Dealbreaker.com’s John Carney wonders if Andrew Ross Sorkin of the New York Times owes Charles Gasparino of CNBC an apology. If you remember, Sorkin shot down Gasparino’s reporting earlier this month that Apollo was thinking about an initial public offering.
Carney wrote, “As the story progressed it seemed that Sorkin was at least half-right. Reports were published indicating that Apollo was not yet getting ready for a public offering of shares. It was said to be considering a private offering of equity instead. Since these privately sold shares would probably come complete with registration rights that would allow them to be sold on the public markets eventually, the CNBC story didn’t look quite as far off as Sorkin’s item made it seem.
“But the reports coming out from the Milken Institute’s annual Global Conference indicate that Sorkin may have overshot in his takedown of Gasparino’s report. Apollo founder Leon Black stopped short of commenting on his firm’s plans for an equity offering, but it seems clear they are at least considering a public offering.
“Here’s how Business Week describes Black’s remarks at the conference:
But Black did build his case for public ownership of the businesses. He said publicly traded shares would allow him to retain top managers and recruit new ones by offering them stock in the firm. He also said such an offering would give him currency to acquire other, smaller firms. One of the ways Black said he’s been able to achieve superior returns was by hiring investment managers with experience in specific industries. He said he’d like to expand that expertise, noting that health care and energy were two areas in which his firm was weak.
Read more here.
