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...wine-tasting trip to Europe last week, police arrived at his Park Avenue penthouse to put him under arrest. Behind the refined veneer, it appears, Bennett may have been playing loose with the rules. Just two months after Refco raised $583 million in an initial public offering (IPO), federal prosecutors accused Bennett of hiding $430 million of uncollectible debt, in so doing propping up Refco's earnings and share price. When the news hit, Refco shares plunged from $28.56 to $7.90, wiping out $2.6 billion of shareholder wealth before the New York Stock Exchange halted trading. It wasn't clear...

Author: /time Magazine | Title: Squandered Futures | 10/16/2005 | See Source »

...commodities markets that Refco had dominated were holding up well last week. But there will be plenty of fallout elsewhere. A source close to Refco's largest shareholder, buyout kingpin Thomas Lee, says Lee figures his remaining Refco stake is worthless. Lee recouped $175 million in the Refco IPO. But he had invested $507 million for 57% of Refco in 2004, using funds from dozens of public and private pension systems, including California Public Employees' Retirement System, Pennsylvania State Employees' Retirement System, General Motors and Verizon. As a Refco insider (several Lee executives are on the Refco board...

Author: /time Magazine | Title: Squandered Futures | 10/16/2005 | See Source »

...recent years Bennett had improved Refco's record, but his handling of Refco's IPO may have been reckless in more ways than one. Not only did Bennett fail to disclose $430 million--more than double last year's net income--that would never be collected (believed to be the result of hedge-fund clients who didn't pay up after bad trades), but he also went ahead with the IPO even though his top lieutenant, Santo Maggio, was under investigation by the SEC in connection with a stock-manipulation scheme that had driven software firm Sedona into the ground...

Author: /time Magazine | Title: Squandered Futures | 10/16/2005 | See Source »

...sign of the times that one of the hottest IPOs in India this year was that of a newspaper company. Shares in HT Media?which publishes Hindustan, a major Hindi daily, the Hindustan Times, an English-language newspaper, and two magazines?listed on the Bombay stock exchange on Sept. 1 after raising about $90 million through a public stock sale. The IPO marked the climax of an extraordinary year for the Indian newspaper industry, which has seen new editions launched, turf wars fought and sensational stories broken. All this exuberance is a heart-warming sight for newspaper publishers. In most...

Author: /time Magazine | Title: Fishing for the News | 9/19/2005 | See Source »

...search-engine outfit called Baidu, a.k.a. China's Google, launched an IPO in the U.S. The stock was initially priced at $27?and closed at $122.54 after its first day of trading, a move that evoked nothing if not the infamous dotcom bubble of the 1990s. Except that no one believes China's Internet boom is a bubble, given that there is so much potential growth...

Author: /time Magazine | Title: Why eBay Must Win In China | 8/22/2005 | See Source »

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