In addition to JP Morgan, alongside Kkr also Citigroup and Morgan Stanley
The expression of interest of Kkr for Tim can turn into Takeover bid or be withdrawn but one against takeover bid it is not easy, not because the interested parties are missing, but because the international banking battleship deployed by Kkr appears difficult to counter.
He writes it The sun 24 hours explaining that the leverage buy out proposed by the fund of private equity American is counting on a $ 45 billion letter of credit guaranteed by itself JP Morgan which, with total assets for 3.6 trillion it’s a loan volume of about 1 trillion, is the only Western bank that can keep one on the “books” such a huge line of credit granted to a single counterparty.
Besides Kkr there are also also two other American banking giants (Citigroup and Morgan Stanley) who will support the offer. The former CEO by Tim Luigi Gubitosi, according to rumors, he had proposed to the board to name how advisor the other two large American banks (Bank of America and Goldman Sachs). Once Gubitosi is released, it is possible that Tim’s board will make different choices regarding advisor. But if BofA and Goldman enter the game, they are unlikely to take sides against Kkr.
Financial support for a counter-takeover bid, which would require a initial letter of credit worth at least $ 50 billion, could only count on the support of the large European banks. But given the different sizes compared to the giants of Wall Street, analysts point out, a pool of at least ten banks would be needed to support a counter-bid. The path of counter-offer is not impossible but appears to be uphill.
Meanwhile, Tim will start entering today on the merits of the evaluation of Kkr’s offer. In fact, the strategic initiatives committee chaired by Salvatore Rossi who will also choose the advisor (the names of Banca Imi, Lazard and Rothschild).
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