Burkle Affiliate Reports Xinhua Stake
Tuesday October 9, 1:46 pm ET
Affiliate of Billionaire Ron Burkle Reports 6.2 Percent Xinhua Finance Media Stake
NEW YORK (AP) -- An affiliate of supermarket billionaire Ron Burkle's Yucaipa Cos. has acquired a 6.2 percent stake in Xinhua Finance Media Ltd., according to a Securities and Exchange Commission filing Tuesday.
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In the filing, Yucaipa Global Partnership Fund LP reported holding 8.6 million shares of the Beijing-based Chinese news and broadcast company, which completed an initial public offering of American Depositary Shares earlier this year.
Yucaipa Global said the shares were acquired for investment purposes because they are "undervalued by the market at the present time." The stock was acquired in directly negotiated transactions from existing shareholders for $25.7 million.
In late September, Xinhua said Yucaipa had taken a stake of undisclosed size in the company. At the time, the company also said Yucaipa partner David Olson was appointed to Xinhua's board. In Tuesday's filing, Yucaipa said the acquisition of the stake was not conditioned upon his appointment.
Yucaipa, which said Xinhua "should have substantial opportunities for future growth," reserved the right to discuss the company with other shareholders, industry participants and other parties.
Xinhua shares have dropped more than 25 percent since the company's IPO priced at $13 per share in March. In afternoon trading, the stock fell 52 cents, or 5.5 percent, to $9.
Ronald W. Burkle (b. November 12, 1952 in Pomona, California) is a supermarket billionaire from Beverly Hills, with a personal wealth of over US$2.1 billion. He founded The Yucaipa Companies, a Los Angeles based private equity firm, in 1986. He was once a bag boy[1] and is now recognized as one of the pre-eminent investors in the retail, manufacturing and distribution industries. Burkle's investment group, The Yucaipa Companies, has recently worked with The Newspaper Guild and the Communications Workers of America to explore alternatives to Rupert Murdoch's buyout of Dow Jones & Company by his News Corporation.[2]
Burkle has served as Chairman of the Board and controlling shareholder of numerous companies including Alliance Entertainment,[3] Golden State Foods, Dominick's, Fred Meyer, Ralphs and Food4Less. He is currently a member of the board of Occidental Petroleum Corporation,[4] KB Home[5] and Yahoo![6] He is also part owner of the Pittsburgh Penguins[7] major league hockey team of the National Hockey League, although his exact share of the team is unknown.
Burkle is a well-known Democratic supporter and fundraiser who has raised over $1,000,000 for the Hilary Clinton presidential campaign.[1] He has supported California State Treasurer Phil Angelides and employed former San Francisco Mayor Willie Brown, both of whom are former CALPERS board members but has also made contributions to California Governor Arnold Schwarzenegger.[2] Robert Novak reported in June, 2007 that 98% of Burkle's $1.5 million political contributions to date have gone to Democrats. Burkle is a close friend of former President Bill Clinton, who calls Burkle's Boeing 757 private jet "Ron Air."[3] Clinton is employed by Burkle's investment firm, The Yucaipa Companies. Burkle co-hosted a fundraiser for Hillary Rodham Clinton at his Green Acres Mansion together with convicted felon and fugitive Norman Hsu. Burkle and Steve Rattner helped finance Al Gore's cable Current TV network. [4]
October 2007 news reports suggest that Burkle has started dating actress Kate Hudson, following the breakup of her short-lived relationship with actor Dax Shepard.[5] Reportedly, Shepard learned of the breakup through a phone call from a friend.[6]
As of May 2007, real estate developer Raffaello Follieri who is the boyfriend of actress Anne Hathaway was being sued by billionaire Ron Burkle for $55 million dollars which Burkle alleges Follieri spent on a private jet, care for their pet Labrador, and shopping sprees for Anne. The money was supposed to be allocated into a land development project.
It has been suggested that Tony Blair may take up a seat on the board of one of Burkle's companies when he stands down as Prime Minister of the United Kingdom[7]
this is only my opinion and it's usually not my opinion very long because I CHANGE MY MIND FREQUENTLY
