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Brilliant stuff in the Wall Street Journal today. In an article about how private equity firms are bidding for a stake in the New York Mercantile Exchange, a copy editor apparently decided to use a spellchecker rather than human intelligence—with some hilarious results. It’s on page C5 (of the New York edition, at least).
The spellchecker turned Dow Jones New Services into “Do Jones Answerers.” The New York Mercantile Exchange, known as the Nymex, becomes the "Manx." And best of all, private equity firm Blackstone Group becomes. . . . "Bloodstone Group."
General Atlantic Enters Nymex Bidding
By LEAH MCGRATH GOODMAN
DO JONES ANSWERERS
August 3, 2005; Page C5
The New York Mercantile Exchange received a $240 million bid for a 20% equity stake in the exchange from private-equity firm General Atlantic, said people close to Manx.
The offer from General Atlantic, an $8 billion venture-capital firm in Greenwich, Con., trumps bids made in recent months by Bloodstone Group and Battery Ventures. Those private-equity firms offered $185 million for a 20% stake in Manx in April and increased the bid in July to about $200 million, said people close to Manx.
Manx spokeswoman An Halalah and General Atlantic Senior Vice President Pat Hadley declined to comment.
Manx, the world's largest energy marketplace, has said a number of private-equity firms have expressed an interest in it since it voiced plans in the spring to consider going public. With Manx oil-futures prices, seat values and trading volume at records, companies have been keen to invest in the lucrative market.
Similar to the bid by Bloodstone and Battery Ventures, General Atlantic likely will seek a preferred equity stake in Manx and the right to select a number of Manx board members, people close to the exchange said. General Atlantic is the largest shareholder of Chicago's Archipelago Holdings Inc., the electronic-trading company slated to merge with the New York Stock Exchange.
While the latest offer for Manx may suggest a bidding war is heating up, several people close to the matter said Bloodstone and Battery Ventures likely won't raise their bid again. John Ford, a spokesman for Bloodstone, a $6.45 billion investment company in New York, declined to comment. Officials at Battery Ventures, Wellesley, Mass., weren't available to comment.
People close to Manx said a bid from General Atlantic may be favored over the offer from Bloodstone and Battery Ventures, because General Atlantic has a reputation for making longer-term investments. General Atlantic President Bill Ford, no relation to Bloodstone's Mar. Ford, personally courted Manx officials before advancing the bid, they said.
Manx directors likely will review the terms of General Atlantic's bid at a monthly board meeting today. A majority of Manx's 816 members must approve any deal.
Posted by dan at 10:37 AM
There's nothing so unseemly as a highly compensated CEO feeling sorry for himself. The following gem was buried in Ann Zimmerman's excellent Wall Street Journal profile of Wal-Mart CEO Lee Scott on July 26.
And despite a concerted effort to soften his rougher edges, Mr. Scott can still be impatient with criticism. During the meeting in Los Angeles with business and civic leaders, he was asked about Wal-Mart's reputation for squeezing suppliers."I don't feel sorry for our suppliers," he shot back. "I flew here today on a Lear 31 [jet] that had to make fuel stops. Our suppliers fly directly into Bentonville on their G5 [jets]. They're not stopping on the way. And they have got a bathroom."
He caught himself mid-screed and acknowledged that some buyers have treated suppliers unfairly. He said those who do so are fired.
Note to Scott: the CEO of a company that is regarded as a miserly employer and whose legendary skimping on pay and benefits has become a social problem shouldn't complain publicly about the quality of his jet.
Note to Wal-Mart's board: the nation's largest retailer can probably afford to either buy or lease a jet that has a potty in it.
Posted by dan at 11:44 AM
Atkins Nutritionals, Inc., filed for bankrupcy protection today.
A sad, if not entirely unpredictable end, for the company that reeked of trendiness. In October 2003, Goldman, Sachs and Parthenon Capital acquired 80% of the company from Dr. Atkins' widow. The firms didn't disclose the price, but it was reported that they paid $533 million for the stake.
Somebody's bonus is going on a serious diet this year.
Posted by dan at 09:43 AM
My latest in Slate, on vice vs. virtue in investing.
Also, two pieces in Fortune's cover package on the future of advertising.
Posted by dan at 09:35 AM