Private Equity

India - Promoters, PE investors' row raises key issues

Source: The Business Standard, 01 November 2011

The tussle between promoters and private equity investors in companies such as of Lilliput Kidswear and KS Oils have dug up again same issues of lack of corporate governance as well due diligence among the PE fund managers.

A recent KPMG-CII study on corporate governance said, "Recent scandals in corporate India have raised questions not only about the practices adopted by companies to solicit business but also about the standards of accountability in public administration including within the government machinery and institutions."

Global - Yahoo deal talks hit brick wall

Source: The Times of India, 28 October 2011

Despite all the rumored interest in Yahoo Inc, progress on a deal has hit a brick wall mainly due to the company's lack of strategy and restrictive confidentiality agreement, people familiar with the situation said.

Most of the private equity firms and strategic buyers considering a bid for the Internet giant have still not looked at the financial documents Yahoo began circulating two weeks ago because the confidentiality agreement, once signed, restricts their ability to form consortiums, these people said. "It's a stalemate," said one source familiar with the process, referring to the standoff taking place between Yahoo and its suitors.

South Korea - S.Korea order on Lone Star's KEB stake seen in Nov

Source: Reuters, 25 October 2011

South Korea is expected to order U.S. private equity fund Lone Star to reduce most of its 51 percent stake in Korea Exchange Bank next month, a regulatory official said, a key step for the fund to move toward closing its $4.1 billion takeover deal with Hana Financial Group.

A Financial Services Commission (FSC) official with knowledge of the matter told Reuters that after some technical procedures, Lone Star would likely receive the selldown order in November. South Korea has kicked off a process of ordering Lone Star to reduce its KEB stake to 10 percent or lower, following a recent Seoul court's guilty verdict on its stock manipulation charges.

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