10 Updates

Who Got Rich This Week: Rackspace Founder and Mega-merger Investment Banker

May 17 2014, 8:48am CDT | by

Each week at Forbes we scan our database of corporate insiders to see who got richer from the action in the stock market. Rack city San Antonio native Graham Weston made the best investment his life...

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9 weeks ago

Who Got Rich This Week: Rackspace Founder and Mega-merger Investment Banker

May 17 2014, 8:48am CDT | by

Each week at Forbes we scan our database of corporate insiders to see who got richer from the action in the stock market.

Rack city

San Antonio native Graham Weston made the best investment his life in the late 1990s when he provided start-up capital to the nascent company that would become Rackspace. The web-hosting and cloud-computing firm, which Weston would lead as CEO until 2006, continued to grow — even despite a less-than-stellar IPO during the pre-crisis market of August 2008 — eventually minting a ten-figure fortune for its largest shareholder. But Weston’s net worth topped out at $1.3 billion in 2013; then Rackspace’s stock price began to slide. Facing stiff competition from giants like Amazon and Google, it slipped from as high as $81 per share in January 2013 down to below $27 per share earlier this month.

But Rackspace began experiencing a mild resurgence earlier this week after a strong first-quarter earnings report that beat expectations, including a 16% increase in revenue to $421 million. By Friday, investors began rapidly snapping up Rackspace stock in a frenzy that pushed its price past $37 per share, a 39% increase from a week ago. The source of enthusiasm? News broke late Thursday that the company had hired Morgan Stanley to explore potential partnerships or acquisitions. The surge has provided a sizable one-week bump to its chairman’s net worth. Weston, who owns 13.7% of the company, saw his holdings improve $211 million, from $569 million to $780 million by midday Friday. If buyout talks heat up, Weston could find himself nearing the billionaire ranks again this year.

Merger mavens

Global investment bank Moelis & Company was founded in 2007 by a cadre of ex-UBS financiers. Since then, it has advised on some of the most notable megadeals in recent history, including Anheuser Busch’s $61.2 billion sale to InBev, the American Airlines and US Airways merger and Heinz’s $28 billion sale to Berkshire Hathaway and 3G Capital. Most recently, it presided over the implosion of what would have been the largest merger in advertising history — the $35.1 billion deal between Omnicom and Publicis that collapsed last week. If investors think Moelis & Co. merit any of the blame, they’re not showing it. The bank, which executed its initial public offering in April, is up 11% in the past week, closing Thursday at $29.15 per share and a market capitalization of nearly $1.6 billion

Kenneth Moelis, the company’s founder, chairman and ceo, has benefited the most from the company’s stock movement. An industry veteran who started out at Drexel Burnham Lambert in 1981, Moelis is the largest shareholder of his namesake firm, with a 26% economic stake that was worth $333 million when the company publicly listed a month ago at $25 per share. In the past week his stake has appreciated by $39 million from $350 million to $389 million.

Despite the IPO, Kenneth Moelis isn’t relinquishing any control of Moelis & Co., retaining 97% of its voting shares. He told the New York Times , “It’s my largest investment in the world, and I’m protecting it.”

 
Update
10

6 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

Cambodia's Famous Battambang Circus
KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Raky ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

6 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

Australia A v CA NPS
KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

6 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

The Prince Of Wales Visits The Royal International Air Tattoo
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rej ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

6 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri Hishammuddin Hus ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

6 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

INDIA-CHINA-DIPLOMACY-TRADE
PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the so ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

6 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

Government Weekly Cabinet Meeting
KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 mi ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

6 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

6 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

Iskandar Johor Open - Previews
JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of RM ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

6 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

EurAsia Cup presented by DRB-HICOM - Day One
PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar S ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

6 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kidex) today. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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