The Carlyle Group, a private equity underwriter (PEU) will make out quite well from a subsidiary's IPO. The proceeds should cover the firm's initial investment. SemGroup intends to sell 12.5 million shares at $22 a share with total proceeds of $258 million. Carlyle owns 30% of the parent company and stands to gain $77 million. Just two and a half years ago the PEU purchased their interest in SemGroup for $75 million. This leaves Carlyle with a $2 million gain and free shares, as according to the prospectus they still control 30% of the parent corporation after the public offering of only half of the sub.
How do the Bush tax cuts save Carlyle money? A 5% savings on a $39 million profit equates to $2 million. The PEU doubles their money while saving on taxes. How much will their executives save as their proceeds are taxed at 15% vs. 35% like ordinary companies? All this so Bush can threaten a veto on efforts to expand CHIP to cover more people? The money changers are deep inside the temple while the poor beg for alms outside...
How do the Bush tax cuts save Carlyle money? A 5% savings on a $39 million profit equates to $2 million. The PEU doubles their money while saving on taxes. How much will their executives save as their proceeds are taxed at 15% vs. 35% like ordinary companies? All this so Bush can threaten a veto on efforts to expand CHIP to cover more people? The money changers are deep inside the temple while the poor beg for alms outside...
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