By Alan Kohler
Banks and investment institutions are tickled pink as well, because it means big juicy loan licks for banks at healthy margins and big juicy liquidity events for investors at healthy prices, as cash is transferred from bank to investor, minus the big juicy investment bank and private equity fees of course.
The only problem is finding suitable fodder in a stockmarket that has been going up in a straight line for two years, which is why most of the deals these days are not like TWE, where the private equity firms make competing offers for expensive public companies.
According to M&A research house, Dealogic, private equity companies accounted for 32 per cent of the $US20. 4 billion in investment bank revenues so far this year.
In any case the settlement of the 2007 case and the TWE bids conclusively mark the return of big, and aggressive, private equity, and the investment banks couldn’t be happier about it.
The December 2007 class action accused 11 private equity firms of conspiring to drive down takeover prices and reduce takeover competition, often by agreeing not to outbid each other.
Read more here: Business Spectator