relative stability

DealBook: Deutsche Annington Shelves I.P.O. Plan

Brendan Mcdermid/ReutersGuy Hands runs Terra Firma.

LONDON – A German real estate company owned by Terra Firma, the private equity firm run by the British financier Guy Hands, has shelved a planned initial public offering, citing adverse market conditions.

Deutsche Annington Immobilien, one of Germany’s largest residential landlords, said in a statement late on Tuesday that it had called off the offering planned for Wednesday in Frankfurt, but added that the company would continue with its investment plan. Deutsche Annington said it would continue to evaluate the market environment and might sell shares sometime in the future.

Terra Firma, which was set up by Mr. Hands in 1994, had been expected to sell a part of its investment in Deutsche Annington in the initial share sale. Terra Firma bought Deutsche Annington in 2001 and has since helped it to grow through acquisitions of large real estate portfolios, betting on the relative stability of the German residential real estate market.

Deutsche Annington was expected to raise 1.1 billion euros ($1.4 billion) in the sale. It would have followed some successful initial offerings of similar businesses this year, including Germany’s LEG Immobilien. But concerns among investors that central banks could curb stimulus and start to unwind any support for the markets since the financial crisis five years ago had recently weighed on stock prices around the globe.

“Based on our strong financial position, we will focus on driving our operational performance, including continuing our investment and modernization program as planned,” Rolf Buch, Deutsche Annington’s chief executive, said in a statement.

Deutsche Annington owns more than 180,000 residential units worth a combined 10.4 billion euros. The company employs about 2,400 people.

Article source: http://dealbook.nytimes.com/2013/07/03/deutsche-annington-shelves-i-p-o-plans/?partner=rss&emc=rss

Bertelsmann C.E.O. to Step Down

Mr. Ostrowski will be replaced by Thomas Rabe, the chief financial officer, on Jan. 1, 2012, a year before Mr. Ostrowski’s contract was set to expire.

Until Monday, many analysts had expected that Mr. Ostrowski, who is 53, would be reappointed to a second term as chief executive, given that he has steered Bertelsmann through the global financial crisis in relatively good shape.

As chief financial officer, Mr. Rabe has also gotten credit for Bertelsmann’s relative stability in recent years, which followed a period in which the company had to pay down debt accumulated in a buyout spree. Associates describe Mr. Rabe as a highly ambitious executive who has been eager to prove himself as the top manager.

“The groundwork has been laid for leading Bertelsmann into the next expansive stage of development,” Gunter Thielen, chairman of the board, wrote in a letter to employees. “In Thomas, I am positive that we have an entrepreneur at the top who will lend momentum to Bertelsmann’s growth.”

Under Mr. Ostrowski and Mr. Rabe, Bertelsmann has dipped its toes back into the merger-and-acquisition waters.

For example, they have been looking at the music company EMI Group, which is currently being sold by Citigroup. BMG Rights Management, a joint venture between Bertelsmann and the private equity firm Kohlberg Kravis Roberts, is said to be primarily interested in EMI’s music publishing business.

Mr. Rabe has overseen BMG since it was set up in 2009, marking Bertelsmann’s re-entry into the music business after Bertelsmann sold its share of a previous music partnership with Sony to the Japanese company in 2008.

The personable Mr. Ostrowski rose through the ranks in a less glamorous part of Bertelsmann — its services arm, Arvato, which was set up to run Bertelsmann’s book clubs but now handles a range of logistical tasks, many of them for other companies.

After relinquishing his duties as chief executive, Mr. Ostrowski will become a member of the board, though Mr. Thielen will remain chairman of Bertelsmann, which is based in Gütersloh, Germany.

Article source: http://feeds.nytimes.com/click.phdo?i=ffab935753abb807b1793890f87103a0

DealBook: Deutsche Annington Shelves I.P.O. Plan

Bertelsmann C.E.O. to Step Down

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