News briefs, May 28, 2007

Bain fund-raising likely on hold

Bain Capital

is holding its annual meeting this week and sources say that many LPs are expecting some sort of fund-raising plans to be announced. But they may be left hanging.

Sources say that Bain isn’t expected to outline any definite fund-raising plans until it knows the outcome of its Clear Channel Communications and OSI Restaurant Partners Inc. deals.

It’s now expected that both transactions will receive shareholder approval, thanks to upwardly-revised acquisition offers, which means that Bain’s 10th fund (including a $2 billion co-invest vehicle) would be well over 60% committed. So Bain probably would not need to begin fund-raising if either of the deals fall through (particularly Clear Channel, which also would result in a breakup fee to Bain of between $300 million and $500 million. Another scenario is that Bain could postpone fund-raising plans until late this year or perhaps early 2008.

LPs expect the target of the next fund in the range of $15 billion to $20 billion.

Blackstone outlines IPO

The Blackstone Group has set terms for its IPO at about 133.33 million common units, offered at between $29 and $31 per unit, which could net up to $4.13 billion.

Blackstone also could offer an additional 20 million units at the underwriters’ discretion, which would bump the total up to $4.75 billion.

Blackstone announced its IPO terms days after confirming that it would sell a $3 billion non-voting stake in its management company to the government of China. It is unclear if the capital will be put toward Blackstone’s current fund-raising efforts, or if it will be used for a separate vehicle. Neither Blackstone nor Central Huijin, China’s central bank, have returned requests for comment.

Alltel stockholder sues

Alltel Corp.

(NYSE: AT) stockholder Lon Engel has sued the wireless provider, claiming the company’s proposed buyout is “grossly unfair and far below the maximum value.” The lawsuit, which requests class-action status, was filed last week in Chancery Court in Wilmington, Del., and names the company, CEO Scott T. Ford and other past directors of Alltel as defendants.

TPG and GS Capital Partners have agreed to acquire Alltel at about $27 billion. Under terms of the deal, Alltel shareholders would receive $71.50 per share in cash, which is a 23% premium over the company’s stock price before media reports of a potential buyout began to surface.