Millennium Management Demanded Significant Changes at Weiss Multi-Strategy Advisers in Failed Takeover Talks
Millennium Management’s Failed Takeover Bid Revealed in Email Correspondence
In a dramatic turn of events, Millennium Management’s failed takeover bid of Weiss Multi-Strategy Advisers has been brought to light through email correspondence made public as part of Weiss’s bankruptcy proceedings. The negotiations, which took place in late February, ultimately fell apart when Millennium walked away, leading to Weiss filing for court protection in April.
The details of the failed takeover bid are shocking, with Millennium demanding significant changes at Weiss, including firing all but five portfolio managers, winding down the firm’s core staff, and kicking out client cash. Millennium also sought to control Weiss’s finances and refused to take on any existing liabilities other than some obligations to strategic partner Leucadia Asset Management.
In addition, Millennium requested that Weiss Chief Investment Officer Jordi Visser step down and asked for new contracts to be drawn up for portfolio managers that included protections for the firm. The negotiations offer a rare glimpse into deal negotiations between hedge funds, shedding light on the inner workings of the industry.
Despite the breakdown of the talks, Millennium offered to provide Weiss with as much as $30 million to repay Leucadia and obtain a “full release” of any future obligations. They also offered $25 million for retention payments for portfolio managers.
The failed takeover bid is just the latest in a series of high-profile negotiations in the hedge fund industry, with industry giants seeking external firms to run their cash and optimize costs. Last year, Millennium held talks with Schonfeld Strategic Advisors, but those discussions also fell through.
As the industry continues to evolve and consolidate, it remains to be seen what the future holds for Weiss Multi-Strategy Advisers and Millennium Management. Stay tuned for further developments as the story continues to unfold.
