Jamie Dinan founded York Capital Management in September 1991 and is the Chairman, Chief Executive Officer and a Managing Partner of the Firm. From 1985 to 1991, he worked at Kellner, DiLeo & Co., where he became a General Partner and was responsible for investing in risk arbitrage and special situation investments. From 1981 to 1983, Jamie was a member of the investment banking group at Donaldson, Lufkin & Jenrette, Inc. Jamie Dinan spoke today at the Capitalize For Kids Conference in Toronto and presented his favorite idea. Below are some (very) informal notes from Dinan who talks about merger arbitrage worth looking.
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Jamie Dinan of York Capital Management
US growth is still quite healthy, Europe – Not so
Oil prices coming down will give a huge amount of money to the US consumer (essentially a $130B tax break for consumers)
Europe will be a reactionary market to policies
A lot of distressed situations in Europe
Merger Arbitrage worth looking at which seem to have a high probablity of succeeding
Time Warner Cable Inc (NYSE:TWC)/Comcast Corporation (NASDAQ:CMCSA)
Albemarle Corporation (NYSE:ALB)/Rockwood Holdings, Inc. (NYSE:ROC)
DIRECTV (NASDAQ:DTV)/AT&T Inc. (NYSE:T)
Downside on TWC if deal with CMCSA falls through, is roughly $137.66 per share based on the announced CHTR proposal (higher than the current price)
90% probability that the deal gets done
Jamie Dinan on Molson Coors Brewing Company (NYSE:TAP)
they think an event could happen
TAP has a 42% stake in MillersCoors
York believes BUD will pursue an acquisition of SAB
The combined entity would likely to be forced to divest 58% interest in the MillerCoors JV
They believe the deal will get done at $10b, all debt
bringing TAP’s leverage to 5x EBITDA
$300m in synergies estimated from integrating MillerCoors with TAP’s canadian business
reminds him of the STZ/BUD event when BUD was forced to divest the US JV of Groupo Model
Avenue Capital
Marc Lasry is the Chairman, Chief Executive Officer and Co-Founder of Avenue Capital Group, a global alternative investment manager with approximately $12.6 billion in assets under management, and specializing in distressed debt investing. Avenue, founded in 1995 and headquartered in New York City, has offices in London, Luxembourg, Munich, and four offices throughout Asia. Avenue likes Avaya Paper, YRC Equity
Shawn Foley
Avenue Capital US Strategy
$14B AUM
Distressed Debt investors
US leveraged finance focus
Avaya
first lien paper
and second lien paper
Avenue Capital on YRC Worldwide Inc (NASDAQ:YRCW)
equity idea
Avenue Capital on Meritor Inc (NYSE:MTOR)
Debt and equity look interesting
new ceo Ike Evans, solid background at UNP and emerson electric
reducing debt to below 1.5b
Martin Frass Ehrfeld
TCI Real Estate Partners
Going to discuss real estate lending