Private equity deals of the year
WINNER: Bank United acquisition
This deal effectively created a safety net for failing US banks. Until this transaction, investor groups could not bid on failing banks, so a new legal framework was required. In addition, private equity investors are limited to a 25% stake in banks, so multiple partners were needed.
The $900 million transaction required detailed negotiation in the acquisition of Bank United from the FDIC and regulatory approvals. A charter had to be secured to participate in a bank bid and this involved persuading the OTS and FDIC that the investors were acceptable, that they would not have a controlling stake and that the deal would be done in time to avoid disruption in customer service.
Skadden Arps Slate Meagher & Flom advised a consortium of international private equity investors, including WL Ross & Co, The Blackstone Group, The Carlyle Group and Centerbridge...