MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Tuesday, June 23, 2009 Fink's Financing Nail-Biter Comes to Light BlackRock CEO Larry Fink wanted to announce his firm's acquisition of Barclays Global Investors on the morning of June 10, but it didn't happen until the evening of June 11. That's because BlackRock's relationship with the so-called "Queen of British Football" went sour, prompting Fink to pound the phones to line up more than $2 billion to save the deal, The Wall Street Journal's Dennis Berman reports.
Staveley, according to the WSJ, had said she could line up billions from Gulf sovereign funds to help fund BlackRock's deal with Barclays. Fink expected at least $2 billion from the sovereign wealth investors. On June 9, BlackRock executives called Staveley to obtain commitment letters from those investors, but the letters Staveley gave BlackRock were from a special-purpose vehicle she managed. BlackRock executives became frustrated because they couldn't tell where the money was coming from, and Staveley would not give specifics, according to the Journal. A shouting match ensued and by Wednesday, BlackRock cut off ties with Staveley. Racing against the clock -- BlackRock needed to line up the money by Friday; otherwise its exclusive deal with Barclays would expire -- Fink worked the phones and within hours, was able to secure commitments totaling $2.8 billion from BlackRock shareholder PNC and sovereign wealth funds from Singapore, China and Kuwait, and hedge fund Highfields Capital. Printed from: MFWire.com/story.asp?s=21876 Copyright 2009, InvestmentWires, Inc. All Rights Reserved |
