Sculptor Softens a Bit on Weinstein
Also deposit convexity, closed-end muni bond funds and biased coin flips.
I think there is a possible endgame now for the Sculptor Capital Management Inc. situation?1 It goes like this:
This is not an optimal endgame. Weinstein would much rather come to a negotiated deal with Sculptor before December. For one thing, it would be faster. For another thing, tendering blindly to buy Sculptor without reaching any agreement with the board or management is risky. Weinstein is trying to buy an asset manager with some $30 billion or so of assets under management, much of it not very locked up, and that’s a better deal if the clients plan to stick around. If he can talk to Sculptor’s management, meet with the biggest clients, hear their concerns and reassure them, that reduces the risk that he’ll end up buying Sculptor and getting nothing.4 There are regulatory and business risks to buying an asset manager with a tender offer, and it would not be anyone’s first choice.5