Hedgefund News Wrap: Week Ending 03/18/2016


(Bloomberg) – Starwood is having cash thrown at it, literally. Previously, Starwood Hotels & Resorts Worldwide Inc. was toying with an offer from Marriott International inc. to be bought out, but now Anbang Insurance Group Co. wants a piece.

It has been released that Starwood received a binding $13.2 billion takeover bid from a group led by China’s Anbang Insurance. Anbang and its partners said they will pay $78 a share in cash for Starwood, a $2 per share increase from the surprise bid last week. Starwood, the parent company of Westin, Sherton and W, now has two offers on the table.

“It’s a jump ball,” said Patrick Scholes, managing director at SunTrust Robinson Humphrey, referring to Starwood. He said he expects Marriott to come back to the table bid with a bid that is modestly higher than its last.

As far as next steps, Marriott has until 11:59 p.m. EST on March 28 to negotiate revisions to the existing agreement and come up with a better offer than Anbang. What happens if Anbang wins? History would be made, as that would mark the largest-ever takeover of a U.S. company by a Chinese buyer. But what happens if Marriott takes it all home? The merger would create the world’s largest hotel operator. Either way, this is one for the history books, folks!

Read the entire article at Bloomberg
More coverage: The Wall Street Journal and Reuters


(The Financial Times) – Shares of Deutsche Bank AG dropped as much as 6.2 percent following co-Chief Executive Office John Cryan stating that he doesn’t expect DB to report a profit this year.

“We’ve said this year is not going to be a profitable year, we may make a small profit, we may make a small loss, we don’t know,” Cryan said at a conference in London on Wednesday. “There’s a lot of stuff we have to get done this year, so this year we’re not going to be profitable.”

So far, this year has not been friendly to the German lender, as shares have decreased about 24 percent this year.

Read the entire article at The Financial Times
More coverage: Bloomberg and Investor’s Business Daily


(Bloomberg) – Japanese conglomerate Toshiba Corp. just announced that it will sell its medical and consumer-electronics units, contributing to efforts to raise cash and reduce its business portfolio. The $5.9 billion asset sales and newly announced big investment in its chip business is great news for Toshiba, who is attempting to cover up their accounting scandal.

They are under investigation by the U.S. over allegations that it hid $1.3 billion in losses at its nuclear power operations, according to people familiar with the matter. The 334-page report stated that management was complicit in padding profits for almost seven years. The U.S. authorities are opening this case, even though the company had already been investigated in Japan. The U.S. Justice Department and Securities Exchange Commission also added that they are looking into the possibility of fraud.

All of this boils down to a record fiscal year loss in its 140-year history, ouch.

Read the entire article at Bloomberg
More coverage: Reuters and The Wall Street Journal