Tuesday, April 18, 2006

Goldman to be ease hostile bid financing

See the article.

"The chief executive of Goldman Sachs (NYSE:GS - news), Hank Paulson, has told the firm to think carefully about using its own money to finance hostile takeovers after a backlash against its role in a series of UK deals, a source close to the bank said on Tuesday. "

"Paulson's move followed the disclosure that Goldman made an unsolicited approach to UK airports operator BAA (BAA.L), which is facing a hostile bid led by Spanish construction company Ferrovial (FER.MC).

Goldman Sachs was also involved in a consortium that made an offer for Mitchells & Butlers, the UK pub chain operator, which then turned hostile.

The bank also backed bids for UK television network ITV (ITV.L) and Associated British Ports (ABP.L).

Goldman's move highlights the increasing conflicts investment banks face in their roles as advisers and investors in M&A activity that frequently involves private equity firms."




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