GLG Partners Hedge Fund
The Rise and Fall of GLG to Man Group's PurchaseMan Group's acquisition of GLG Partners. The wisdom of Man Group's buy has been questioned by some analysts and observers who claim that the hedge fund firm paid too high a premium for GLG shares. Dealbook has provided a good summary of GLG's rise and fall from its public listing via Freedom Acquisition Holdings to Man Group's purchase.
GLG Partners, the hedge fund group, got its New York stock market listing when Freedom Acquisition Holdings, a blank-check company, bought a stake in mid-2007. Then, Freedom’s stock traded above $10. Now, the Man Group, listed in Britain, is buying GLG for $4.50 a share. Sure, Freedom’s owners are getting a price they haven’t seen since last August. But longer term, it looks like a bounced check for investors, Breakingviews argues.
That is how GLG came to market, bypassing the extra complexities of an initial public offering of its own in a deal with Freedom that valued the hedge fund firm at around $3.4 billion. Now, even in a logical-seeming deal that accords GLG a roughly 50 percent premium to the closing price of its stock on Friday, the Man Group is set to buy GLG for around $1.6 billion. For any shareholders still around from the beginning of Freedom-turned-GLG, that’s a disappointment, Breakingviews says. Source