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A team of lawyers from SULLIVAN & CROMWELL’s Palo Alto office helped hammer out the $2.16 billion acquisition of General Electric Capital Corp.’s Financial Guaranty Insurance Co. by a group of investors. Sullivan & Cromwell represented the PMI Group, one of the leading mortgage insurance providers in the country and the primary investor in the deal. PMI will own about 42 percent of FGIC, an insurer of municipal bonds, for an equity investment of approximately $607 million. “It was a very complicated transaction” because of the involvement of the insurance regulators and the rating agencies, said Sullivan & Cromwell partner John Savva, who led the team representing Walnut Creek’s PMI. “The other challenging aspect was the number of parties involved.” There were four principal parties on the buyer side. The co-investors with PMI included the Blackstone Group and the Cypress Group, which will each own approximately 23 percent of FGIC, and CIVC Partners, which will own approximately 7 percent of the company. General Electric will maintain 5 percent ownership of the common equity. In addition to Savva, the Sullivan & Cromwell team working on the transaction included New York tax partner Andrew Solomon, special counsel Chiahua Pan and associates Patrick Brown, Sarah Payne, Julie Yoon and David Spencer. SIMPSON THACHER & BARTLETT New York partners Lee Meyerson and Wilson Neely were the lead lawyers for the buyers group as a whole. And William Gutowitz, a partner in WEIL, GOTSHAL & MANGES’ New York office led the team representing General Electric. LA JOLLA PHARMACEUTICAL HOWARD, RICE, NEMEROVSKI, CANADY, FALK & RABKIN went to market in August for underwriter Pacific Growth Equities Inc. The financing, which raised $21 million for La Jolla Pharmaceutical Co., marked Howard, Rice’s second underwriting deal this summer for the San Francisco investment bank. Howard, Rice partner Joseph Hershenson led his firm’s team for Pacific Growth in the Aug. 8 follow-on offering. Associates J. Alex Moore, Maurine Murtagh, John Sutton and Julia Vax gave an assist. GIBSON, DUNN & CRUTCHER represented La Jolla Pharmaceutical. Partner Mark Shurtleff and associate Eric Nelson, both of whom are based in the firm’s Orange County office, rounded out that deal team.

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