BFW 07/13 16:00 *RAPPER 50 CENT FILES FOR BANKRUPTCY PROTECTION IN CONNECTICUT
Rapper 50 Cent Files for Bankruptcy After Sex-Tape Lawsuit (2)
2015-07-13 19:39:27.627 GMT
(Updates with judge’s ruling in seventh paragraph.)
By Tiffany Kary and Dawn McCarty
(Bloomberg) -- The Grammy-winning rapper known as 50 Cent
filed for bankruptcy in Connecticut after losing a lawsuit in a
New York court over a 2008 sex tape.
Curtis James Jackson III, whose 2003 debut album “Get Rich
or Die Tryin’” was made into an autobiographical film, listed
assets and debt of less than $50 million each in a court filing
Monday in Hartford.
His personal bankruptcy follows a series of legal maneuvers
that one federal judge called efforts to avoid trial in a five-
year-old lawsuit involving the online posting of a sex tape.
Lastonia Leviston sued Jackson in 2010 in New York state
court, accusing him of posting the sexually explicit videotape
and seeking payment for the unauthorized use of her image and
damages for emotional distress.
Leviston said the recording, which she made with a
boyfriend in 2008, was meant to be private. The boyfriend
transferred or sold the video to 50 Cent, according to the
complaint. 50 Cent edited the video, adding narration and
footage of himself dressed in a wig and robe, Leviston said.
Jackson has twice tried to have the case moved out of state
court as trial was set to begin. In one instance, he cited the
bankruptcy of SMS Promotions, his boxing promotion company,
which filed for creditor protection the day before the sex-tape
trial was to start.
A jury awarded Leviston $5 million in damages last week and
was to consider further, punitive, damages, according to a clerk
for Justice Paul Wooten in New York State Supreme Court.
‘Improper Purpose’
In sending the case back to state court last month, U.S.
District Judge Katherine Polk Failla in Manhattan said some of
50 Cent’s arguments for removing the case to federal court
beggared belief and accused him of using dilatory tactics “for
the improper purpose of delaying the trial.”
In a related move, 50 Cent sued another man, seeking to
make him liable for any damages he may be forced to pay in
Leviston’s suit. The defendant in that case originally published
the sex tape, 50 Cent said in court papers, adding that he just
put an embedded link to the video on a website.
After the success of “Get Rich,” 50 Cent was given his
own record label, G-Unit Records, by Interscope, which had done
the same for rappers Dr. Dre and Eminem.
He topped the charts again with his second album, “The
Massacre,” but found even more success in the drinks industry
after partnering with Glaceau, the maker of Vitamin Water. He
was given a stake in the company, which Coca-Cola Co. bought in
2007 for more than $4 billion.
“This filing for personal bankruptcy protection permits
Mr. Jackson to continue his involvement with various business
interests and continue his work as an entertainer, while he
pursues an orderly reorganization of his financial affairs,” 50
Cent’s lawyer, William A. Brewer III, said in an e-mailed
statement.
The bankruptcy is In re Curtis James Jackson III, 15-21233,
U.S. Bankruptcy Court, District of Connecticut (Hartford).
For Related News and Information:
Taco Bell Sued by ‘50 Cent’ Over Persona in Promotion
Legal headlines: TLAW <GO>
Bloomberg legal resources: BLAW <GO>
--With assistance from Lucas Shaw in Los Angeles and Patrick G.
Lee in Manhattan state court.
To contact the reporters on this story:
Tiffany Kary in New York at +1-718-875-1459 or
tkary@bloomberg.net;
Dawn McCarty in Wilmington, Delaware at +1-302-661-7618 or
dmccarty@bloomberg.net
To contact the editors responsible for this story:
Andrew Dunn at +1-212-617-2529 or
adunn8@bloomberg.net
Charles Carter
2015-07-13 19:39:27.627 GMT
(Updates with judge’s ruling in seventh paragraph.)
By Tiffany Kary and Dawn McCarty
(Bloomberg) -- The Grammy-winning rapper known as 50 Cent
filed for bankruptcy in Connecticut after losing a lawsuit in a
New York court over a 2008 sex tape.
Curtis James Jackson III, whose 2003 debut album “Get Rich
or Die Tryin’” was made into an autobiographical film, listed
assets and debt of less than $50 million each in a court filing
Monday in Hartford.
His personal bankruptcy follows a series of legal maneuvers
that one federal judge called efforts to avoid trial in a five-
year-old lawsuit involving the online posting of a sex tape.
Lastonia Leviston sued Jackson in 2010 in New York state
court, accusing him of posting the sexually explicit videotape
and seeking payment for the unauthorized use of her image and
damages for emotional distress.
Leviston said the recording, which she made with a
boyfriend in 2008, was meant to be private. The boyfriend
transferred or sold the video to 50 Cent, according to the
complaint. 50 Cent edited the video, adding narration and
footage of himself dressed in a wig and robe, Leviston said.
Jackson has twice tried to have the case moved out of state
court as trial was set to begin. In one instance, he cited the
bankruptcy of SMS Promotions, his boxing promotion company,
which filed for creditor protection the day before the sex-tape
trial was to start.
A jury awarded Leviston $5 million in damages last week and
was to consider further, punitive, damages, according to a clerk
for Justice Paul Wooten in New York State Supreme Court.
‘Improper Purpose’
In sending the case back to state court last month, U.S.
District Judge Katherine Polk Failla in Manhattan said some of
50 Cent’s arguments for removing the case to federal court
beggared belief and accused him of using dilatory tactics “for
the improper purpose of delaying the trial.”
In a related move, 50 Cent sued another man, seeking to
make him liable for any damages he may be forced to pay in
Leviston’s suit. The defendant in that case originally published
the sex tape, 50 Cent said in court papers, adding that he just
put an embedded link to the video on a website.
After the success of “Get Rich,” 50 Cent was given his
own record label, G-Unit Records, by Interscope, which had done
the same for rappers Dr. Dre and Eminem.
He topped the charts again with his second album, “The
Massacre,” but found even more success in the drinks industry
after partnering with Glaceau, the maker of Vitamin Water. He
was given a stake in the company, which Coca-Cola Co. bought in
2007 for more than $4 billion.
“This filing for personal bankruptcy protection permits
Mr. Jackson to continue his involvement with various business
interests and continue his work as an entertainer, while he
pursues an orderly reorganization of his financial affairs,” 50
Cent’s lawyer, William A. Brewer III, said in an e-mailed
statement.
The bankruptcy is In re Curtis James Jackson III, 15-21233,
U.S. Bankruptcy Court, District of Connecticut (Hartford).
For Related News and Information:
Taco Bell Sued by ‘50 Cent’ Over Persona in Promotion
Legal headlines: TLAW <GO>
Bloomberg legal resources: BLAW <GO>
--With assistance from Lucas Shaw in Los Angeles and Patrick G.
Lee in Manhattan state court.
To contact the reporters on this story:
Tiffany Kary in New York at +1-718-875-1459 or
tkary@bloomberg.net;
Dawn McCarty in Wilmington, Delaware at +1-302-661-7618 or
dmccarty@bloomberg.net
To contact the editors responsible for this story:
Andrew Dunn at +1-212-617-2529 or
adunn8@bloomberg.net
Charles Carter
Saba Partner Andiorio Said to Leave Weinstein’s Hedge Fund (1)
2015-07-13 19:08:57.353 GMT
(Adds departure of marketer in sixth paragraph.)
By Saijel Kishan
(Bloomberg) -- Paul Andiorio, a partner at Saba Capital
Management and one of its first employees, is planning to leave
Boaz Weinstein’s $1.6 billion hedge fund after six years,
according to two people with knowledge of the matter.
His trades have been unwound over the last few months, said
one of the people, who asked not to be identified because the
information is private. Andiorio didn’t return a telephone
message and e-mail seeking comment.
Andiorio joined Saba when Weinstein, the former co-head of
Deutsche Bank AG’s credit business, started the hedge fund in
2009. His exit is the latest in a series of departures from the
firm, which has seen assets slump by more than two-thirds from a
peak of $5.5 billion three years ago amid client redemptions and
losses in each of the past three calendar years.
Weinstein, 42, has struggled to make money amid reduced
price swings in the markets. Performance rebounded this year as
Saba’s credit hedge fund posted a 3 percent gain in the first
six months, one of the people said.
Jonathan Gasthalter, a spokesman for New York-based Saba
with Sard Verbinnen & Co., declined to comment.
Kevin Bell, a marketer at Saba, has also left the hedge
fund, one of the people said. Bell didn’t respond to a telephone
message seeking comment.
More Departures
A team of commercial mortgage-bond traders led by Toby
Hudson left Saba earlier this year. Dmitry Green, who oversaw
risk management and technology, left after five years to join
Mariner Investment Group last month.
Andiorio worked with Weinstein at Deutsche Bank before
joining Saba, named after the Hebrew word for grandfather. The
firm initially had strong returns, gaining 11 percent in 2010
and 9.3 percent in 2011 when the average hedge fund lost money.
Saba lost 3.9 percent in 2012 and 6.8 percent the following
year.
The firm posted its worst year in 2014, losing 11 percent,
failing to profit even when volatility increased. The average
hedge fund posted a 1.4 percent gain last year and has risen 3.7
percent this year through June, according to data compiled by
Bloomberg.
For Related News and Information:
Green Leaving Saba for Mariner Investment Group Risk Role (1)
Saba Capital Said to Post Worst Year in 2014 With 11% Loss (3)
Top hedge-fund stories TNI HEDGE WWTOP <GO>
Hedge-fund news NI HEDGE BN <GO>
Bloomberg Active Indexes for Funds BAIF <GO>
To contact the reporter on this story:
Saijel Kishan in New York at +1-212-617-6662 or
skishan@bloomberg.net
To contact the editors responsible for this story:
Christian Baumgaertel at +1-617-210-4624 or
cbaumgaertel@bloomberg.net
Sree Vidya Bhaktavatsalam
2015-07-13 19:08:57.353 GMT
(Adds departure of marketer in sixth paragraph.)
By Saijel Kishan
(Bloomberg) -- Paul Andiorio, a partner at Saba Capital
Management and one of its first employees, is planning to leave
Boaz Weinstein’s $1.6 billion hedge fund after six years,
according to two people with knowledge of the matter.
His trades have been unwound over the last few months, said
one of the people, who asked not to be identified because the
information is private. Andiorio didn’t return a telephone
message and e-mail seeking comment.
Andiorio joined Saba when Weinstein, the former co-head of
Deutsche Bank AG’s credit business, started the hedge fund in
2009. His exit is the latest in a series of departures from the
firm, which has seen assets slump by more than two-thirds from a
peak of $5.5 billion three years ago amid client redemptions and
losses in each of the past three calendar years.
Weinstein, 42, has struggled to make money amid reduced
price swings in the markets. Performance rebounded this year as
Saba’s credit hedge fund posted a 3 percent gain in the first
six months, one of the people said.
Jonathan Gasthalter, a spokesman for New York-based Saba
with Sard Verbinnen & Co., declined to comment.
Kevin Bell, a marketer at Saba, has also left the hedge
fund, one of the people said. Bell didn’t respond to a telephone
message seeking comment.
More Departures
A team of commercial mortgage-bond traders led by Toby
Hudson left Saba earlier this year. Dmitry Green, who oversaw
risk management and technology, left after five years to join
Mariner Investment Group last month.
Andiorio worked with Weinstein at Deutsche Bank before
joining Saba, named after the Hebrew word for grandfather. The
firm initially had strong returns, gaining 11 percent in 2010
and 9.3 percent in 2011 when the average hedge fund lost money.
Saba lost 3.9 percent in 2012 and 6.8 percent the following
year.
The firm posted its worst year in 2014, losing 11 percent,
failing to profit even when volatility increased. The average
hedge fund posted a 1.4 percent gain last year and has risen 3.7
percent this year through June, according to data compiled by
Bloomberg.
For Related News and Information:
Green Leaving Saba for Mariner Investment Group Risk Role (1)
Saba Capital Said to Post Worst Year in 2014 With 11% Loss (3)
Top hedge-fund stories TNI HEDGE WWTOP <GO>
Hedge-fund news NI HEDGE BN <GO>
Bloomberg Active Indexes for Funds BAIF <GO>
To contact the reporter on this story:
Saijel Kishan in New York at +1-212-617-6662 or
skishan@bloomberg.net
To contact the editors responsible for this story:
Christian Baumgaertel at +1-617-210-4624 or
cbaumgaertel@bloomberg.net
Sree Vidya Bhaktavatsalam
BFW 07/13 18:54 *APPLIED MATERIALS NEW LONG IDEA FOR GREENLIGHT CAPITAL: LETTER
Greenlight’s Einhorn Says AMAT, BK Are New Long Ideas: Letter
2015-07-13 19:08:55.169 GMT
By Arie Shapira
(Bloomberg) -- Greenlight Capital’s David Einhorn, in
letter dated today, says exited long positions in EMC, Conn’s,
Marvell Tech, Altice, Nokia and Playtech.
* Covered ISRG, VALE short positions
* AMAT quickly rises, up as much as 4.6%; BK up 1.7%
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Arie Shapira in New York at +1-212-617-1488 or
ashapira3@bloomberg.net
To contact the editors responsible for this story:
Brad Skillman at +1-212-617-2763 or
bskillman1@bloomberg.net
Will Daley
2015-07-13 19:08:55.169 GMT
By Arie Shapira
(Bloomberg) -- Greenlight Capital’s David Einhorn, in
letter dated today, says exited long positions in EMC, Conn’s,
Marvell Tech, Altice, Nokia and Playtech.
* Covered ISRG, VALE short positions
* AMAT quickly rises, up as much as 4.6%; BK up 1.7%
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Arie Shapira in New York at +1-212-617-1488 or
ashapira3@bloomberg.net
To contact the editors responsible for this story:
Brad Skillman at +1-212-617-2763 or
bskillman1@bloomberg.net
Will Daley
*GREENLIGHT EXITED LONG POSITIONS IN CONN, EMC, MRVL, ALTICE
*GREENLIGHT COVERED ISRG, VALE SHORTS; EXITS NOK, PLAYTECH LONGS
Deal Reporter
One of Dragon Oil’s [LON:DGO] top-five shareholders said the company’s 10 July production update supports its view that Emirates National Oil Company's (ENOC) offer undervalues the oil producer.
“We believe that the update is supportive of our contention that the current offer does not adequately reflect the value of Dragon Oil however that value might ultimately be realised,” said Richard Doyle, fund manager for Setanta Asset Management.
Dragon has achieved production growth of 25% in the first half of 2015, compared to the same period in 2014, noted Doyle. “This level of growth, while over a six month period, is highly unusual in the oil and gas industry, where growing production has been a challenge for many companies,” he said.
Dragon’s second biggest shareholder Baillie Gifford believes that ENOC’s bid does not reflect the production potential of Dragon’s key asset, the Cheleken contract area, offshore Turkmenistan. The Edinburgh-based fund manager has called for the inclusion of a contingent payment note to allow minorities to benefit from future production milestones.
Despite their criticism of the offer, neither investor has said it will vote against the deal in its current form. ENOC already owns 54% of Dragon, and so only needs acceptances from 23% of Dragon shareholders to de-list the company.
ENOC’s initial approach in March was at 650p per share, which was rejected by Dragon’s independent committee. A number of further proposals were also rejected before ENOC announced a revised proposal of 735p per share on 21 May. Following consultation with shareholders, the independent committee recommended a firm bid at 750p per share.
Other shareholders, such as LGM Investments, Man GLG and Syquant Capital, support the deal at the current price. “In our view, the offer is fair and fully reflects the value of the company,” said Henri Jeantet of Syquant Capital. A fourth minority investor also said previously that he would be very likely to accept the offer.
“Based on our direct ongoing engagement with Dragon Oil's shareholders, we are confident that there is significant shareholder support for the full and fair offer of 750p,” said a spokesperson for ENOC
A special dividend is one way the offer could be improved, according to Doyle. Dragon pays its interim dividend in September and its final dividend in April. The record date for the 2014 interim dividend of 12p per share was 15 August and the payment date was 15 September.
In the update Dragon said that average gross production was 92,060 barrels of oil per day (bopd) and a gross production rate of 100,658 bopd was achieved on 9 June. Production is expected to average at around the 100,000 bopd level until the end of this year, with this rate maintained for a minimum of five years from 2016.
Production has been added from existing wells, highlighting the field’s productivity, according to Doyle. In addition, the 100,000 barrels per day target has already been reached, he said.
The initial closing date for the offer is 30 July. The deal is only conditional on a minimum of level of 80% acceptances or 75% minimum level of acceptances representing a majority of the voting rights held by independent shareholders.
A big surge, then big volatility, in the equity market
China’s equity market has experienced a massive boom and more recently
a significant selloff. Starting one year ago, the Shanghai Composite index
soared 135% to a high of 5166 and the Shenzhen index 170% to 3141. Over
the past 4 weeks, these indices fell 25% and 38% respectively, though they
rebounded late last week and are still well above levels a year ago.
Multiple channels of (modest) impact on the real economy
In addition to the direct contribution of frenzied equity trading to financial
sector GDP, the market boom and slump could affect economic activity via
1) wealth effects on consumption, 2) spillovers to housing markets, 3)
influence on broader financial conditions, and 4) confidence and
“uncertainty shocks”. However, our estimates suggest most of these
indirect effects should be fairly small (exhibit below).
Growth very weak in early 2015, but recovering somewhat
Economic growth has been very weak so far in 2015—indeed, it showed
little obvious benefit from the market boom. The primary forces acting on
real growth are shifts in fiscal policy and broader financial conditions, as
well as external demand. We expect continued efforts at policy support to
underpin growth and keep official full-year real GDP growth close to the 7%
target.
Corrections present opportunities
Revisiting our thesis: Bull-market corrections are common
We note bull markets globally in the past 40yrs have had a 44% probability
of seeing a 20%+ correction, driven by PE retracement, with a key tP/E
support at 15x. We think China is undergoing a correction, not heading into
a systemic/bear phase, but the s-t path could vary among A, H, and ADRs.
A shares: 2/3 into deleveraging cycle; Value in large caps
Forced unwinding of high-risk leverage may be close to the end, but the
shrinking margin balance remains high in absolute (Rmb1.4tn) and market
cap (7.1%) terms. We see deleveraging as critical to prolonging the uptrend
and believe we are 2/3rds through the process, and we believe the govt has
the will/power to fend off systemic risk if necessary. Value is emerging in
select large caps as index fPE has dropped to 14.4X, and more proactive
buybacks have surfaced. That said, investor confidence may take time to
repair, thereby compressing n-t Sharpe ratio, and market structure
concerns may delay inclusion to MSCI. 12m CSI300: 5,000 (+22%).
H shares/ADRs: Intact investment case; buy on corrections
Improving sequential growth in 2H, attractive valuations (9.9X fP/E), visible
policy/reform/index inclusion catalysts, and light investor positioning
continue to buttress our positive stance. The liquidity backdrop for H/ADRs
could be choppy near-term as Mainland flows unwind, but the selloff has
offered investors attractive opportunities to buy. 12m MXCN: 90 (+30%).
MRVL Quick Comment - Stock hit ~$16.50/share in mid-1Q15. China government is focused on strategic acquisitions in semiconductor industry.
ISSI deal at $19.25/share (prior to bidding contest with CY) implied a 2016E P/E valuation of ~14.8x P/E (deal price net of $3.60/share cash); $23.00 deal price values ISSI at 19.0x cash adjusted P/E.
MRVL has ~$4.85/share cash & ST investments and no debt; MC at $13/share is $6.7B. A 15x-19x 2016E P/E multiple implies a MRVL takeover value (using $0.72 adjusted EPS) of $15.65-$18.50/share (~17/share midpoint) or ~25%-48% price premium to the $12.50/share MRVL closing price on July 10,
The FSL and BRCM deal multiples ($11.8B and $37.0B announced deal values and merging with similar-sized merger partners), based on current market prices are both ~14.5x 2016E adjusted P/E. An acquisition (vs. a "merger-of-almost-equals") would likely command a premium multiple.
DISCLAIMER
This information represents neither an offer to buy or sell any security nor, because it does not take into account the differing needs of individual clients, investment advice. Those seeking investment advice specific to their financial profiles and goals should contact their Oscar Gruss & Son Incorporated sales representative. Oscar Gruss & Son Incorporated believes this information to be reliable, but no representation is made as to accuracy or completeness. This information does not analyze every material fact concerning a company, industry, or security. Oscar Gruss & Son Incorporated assumes that this information will be read in conjunction with other publicly available data. Matters discussed here are subject to change without notice. There can be no assurance that reliance on the information contained here will produce profitable results. A security denominated in a foreign currency is subject to fluctuations in currency exchange rates, which may have an adverse effect on the value of the security upon the conversion into local currency of dividends, interest, or sales proceeds. The value of securities and depositary receipts of foreign issuers that are denominated in United States dollars are also influenced by fluctuations in currency exchange rates.
© 2015 Oscar Gruss & Son Incorporated. All rights reserved.
Hearing strength attributed to recirculating takeover chatter