Top 10 Worst Business Deals
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Abu Dhabi, Bear Stearns, Blackstone Group, Cerberus, Citibank, Countrywide, Countrywide Financial, DaimlerChrysler, Everquest Financial IPO, Facebook, Fortress Investment Group, Goldman Sachs, Harman, J.C. Flowers, John Snow, KKR, Mark Zuckerberg, Microsoft, Och-Ziff Capital Management, Sallie Mae, United Rentals,
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Time:
#1. The Public Invests in Blackstone Group
It was only a matter of time before the private equity firms let the public in on the game -- for an inflated price. Blackstone boss Stephen Schwarzman pocketed half a billion dollars on the firm's $4 billion IPO. Since the IPO debuted, the credit markets seized up and so has the deal flow. After closing at $35.06 on its first day of trading, the stock has slipped 38%. A classic case of selling at the top to the suckers, which would be us -- oh, and China too, which invested $3 billion in Blackstone at the height of the leveraged-buyout frenzy. Other private equity IPOs, such as Fortress Investment Group and Och-Ziff Capital Management, took the same route.
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First Posted: 12-12-07 02:38 PM | Updated: 03-28-08 02:45 AM