Private equity daily double

05Jul07

If you thought that the punk performance of Blackstone Group (BX) stock since its IPO was a sign that the private equity boom was on the ropes, well think again.

The one-two punch of a Blackstone bid for Hilton Hotels (HLT) and the filing of a KKR IPO have added additional fuel to the private equity fire. Not surprisingly, there are any number of interesting takes on the news. A sampling follows:

Calculated Risk: “Reports of the Death of Private Equity are Premature”

Zero Beta on the curious timing of both deals.

Tamara Audi and Peter Sanders at WSJ.com asks will the Hilton-Blackstone deal open up another front in the buyout game?

DealBook on the (early) spike in Hilton options prices, indicative of a information “leak.” Bespoke Investment Group on the spike in Hilton options volume.

Chad Brand at the Peridot Capitalist wonders how Hilton could say no to a 40% premium.

Howard Lindzon wonders why private equity is buying stocks that were already on his radar screen?

John Carney at DealBreaker.com has already collected a good assortment of items on the KKR announcement.

Henny Sender and Dennis K. Berman at WSJ.com on the new more independent path this IPO puts KKR upon.

Gwen Robinson at FT Alphaville on how a public KKR stacks up against the already public Blackstone Group.

Eddy Elfenbein at Crossing Wall Street on what will likely drive Blackstone’s stock price going forward, and it isn’t earnings.

Paul Murphy at FT Alphaville on what Blackstone hath created – an uber-conglomerate.

MarketBeat on where the Schwarzometer stands at the moment.

Adam Warner at the Daily Options Report on how to play Blackstone stock now that is once again approaching its $31 offer price.

In our mind this simply demonstrates the power of the private equity trend. Despite a marked reduction in the risk appetite of high yield bond buyers and continued public pressure from Congress on the questions of taxes the trend continues seemingly unabated. In short, the private equity boom will not die of old age, some one, or something, is going to have to kill it off.

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