Thursday, June 28, 2007

Need a Blank Check? How about $500 Million will that work?

Heckmann Forms Buyout Firm
SportsOneSource Media Posted: 6/28/2007
Richard Heckmann, who will soon resign as CEO of K2 Inc. with its sale to Jarden, has formed a new buyout firm called Heckmann Corp. The new company intends to sell 62.5 million shares of stock for $8 each, or $500 million, according to a filing with the Securities & Exchange Commission. But the filing doesn't specify what will happen with the money.

The SEC filing says only that Heckmann Corp. was formed May 29 "to acquire or acquire control of one or more operating businesses" and those efforts "will not be limited to a particular industry."

Such companies are referred to as "blank-check" IPOs.

Among the members on Heckmann Corp's board are Dan Quayle, former Vice President and current chairman of global investments for the Wall Street investment fund Cerberus Capital Management; as well as retired Notre Dame football coach Lou Holtz; and Alfred Osborne, an associate dean in the University of California-Los Angeles Anderson School of Management. All three served on K2's board.

Heckmann, according to the filing, is planning on leaving K2 by August 1.

No comments: