Feb 13, 2024

I heard about some major mergers and acquisitions happening in the financial world. Achmea, a Dutch insurer, is reportedly considering the sale of its life insurance unit for around €3 billion. FTX debtors are seeking approval from a bankruptcy court to sell Digital Custody to CoinList for just $500,000, after FTX acquired it in 2022 for $10 million. Gilead Sciences has agreed to buy liver disease-focused CymaBay Therapeutics for $4.3 billion in cash, representing a 26.5% premium over the previous day’s closing price. Hyundai Motor is also planning an IPO of its Indian unit, which could raise around $2.5 billion, and Martin Marietta has agreed to buy 20 active aggregates operations of Blue Water Industries for $2.05 billion in cash. Terna, Italy’s electric grid operator, is contemplating the sale of its high-voltage power, which could fetch up to €1.5 billion, and Tritax Big Box, a British REIT, has made a £924 million takeover offer for rival UK Commercial Property REIT.

In addition to the M&A news, I also learned about some personnel changes in the financial industry. Kedar Gharpure has joined Stanley Capital Partners as a principal, and David Matter has joined Silver Creek Capital Management as co-CIO. On the market front, the S&P 500 topped 5,000 for the first time ever, showing a significant increase since the start of the new bull market in October 2022.

Finally, there was some discussion about the potential relocation of Tesla Inc.’s state of incorporation from Delaware to Texas, which is generating significant interest and speculation about the implications of such a move. There are concerns about the legal implications and potential challenges that may arise from this proposed relocation.

The news discusses various topics related to the financial industry. It mentions the modern multimanager funds and how they can attribute a certain percentage of performance to their skill and keep it. It also talks about a new fund launch by former Point72 president Doug Haynes, which will use a quantamental strategy to come up with investment ideas and create a portfolio based on systematic algorithms. Another topic is the SEC charging large fees to financial services firms for using mobile phones, particularly for using personal phones to talk about work. The fines seem to scale with the size of the firm, and the SEC has charged several broker-dealers, investment advisers, and affiliated investment advisers for widespread and longstanding failures to maintain and preserve electronic communications.

The news also covers a profile of Bill Ackman, who took a quiz and got a perfect score. Additionally, it mentions various events in the financial industry, such as David Solomon strengthening his grip on Goldman Sachs, private equity returns plunging to global financial crisis levels, and Elon Musk being required to testify in an SEC Twitter probe among other topics. Lastly, the news mentions a virtual conversation and live Q&A about proposed legislation against Chinese biotech companies. The bipartisan bill threatens to derail operations of key Chinese biotech firms by cutting off U.S. government funding, and the conversation will delve into what Senate and House lawmakers are saying, potential challenges and impact of the bill, and what to watch now and what’s next.

Stay Well!