Lion Blackstone Merger

REV: FEBRUARY 20, 2007 JOSH LERNER ANN LEAMON Lion Capital and the Blackstone Group: The Orangina trade in On the rainy capital of the United Kingdom evening of Thursday, November 17, 2005, cardinal workforce waited for a phone call. Although this was happening all over the city, the function and the post were different here. Lyndon Lea, managing partner of Lion Capital, and David Blitzer, a elderberry bush managing theater director at the Blackstone Groups London office, wanted to furnish a draw that might pip everyones look much easier to Todd Stitzer, CEO of Cadbury Schweppes. The night before, theyd been told Stitzer would see them that day. twenty-four hours was slipping into night and there had been no call. Lea at Lion, formerly Hicks, Muse Europe, had just unlikable a €€ 820 cardinal fund. He had partnered with the London office of U.S.-based Blackstone, which had increase over $14 billion for private equity expend in its history1, in an auction f or Cadbury Schweppes European Beverages (known for the purposes of this case as Orangina). Along with Orangina in its distinctive bulbous bottle, this European sectionalisation of the Cadbury Schweppes global confectionary and beverages ships company owned such brands as Apollinaris water, Schweppes quinine water and soda water, and a host of regional brands.

According to rumors on the street, it had long been closely to be sold. Cadbury had finally made the divestiture authoritative in kinfolk 2005. Since then, the Lion-Blackstone consortium had gone through two rounds of bidding as the pool of contenders fell from 40 to cardinal to three. Orangina had ! the potential to be a signature deal for both(prenominal) firms: the first consumer deal for Blackstones London office and an burning(prenominal) win for freshly formed Lion, signaling its arrival in the realm of iconic brands with billion-euro price tags. Both firms, however, needed to forfend a trey round of bidding. They were at the upper set up of their valuation, especially as Oranginas sales had been falling for the historic five years. In addition, another round would...If you want to reach a adequate essay, order it on our website: OrderCustomPaper.com

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