Corporate Raider Saul Steinberg Dead at 73

Friday, 07 Dec 2012 09:16 PM


  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
Saul Steinberg, who led massive takeovers of companies before the titans of private equity popularized leveraged buyouts, and became one of the first personalities in finance to be dubbed a corporate raider, has died at the age of 73.

A lover of dealmaking, Steinberg rose to Wall Street prominence in the 1960s but ran into health and financial difficulties by 2000. His death was announced on Friday by CNBC, where his daughter-in-law Maria Bartiromo is a presenter.

Steinberg is survived by a wife and six children, including Bartiromo's husband Jonathan, the CEO of asset management firm WisdomTree Investments Inc. Steinberg gradually moved into obscurity after he suffered a stroke in 1995 and the conglomerate he created filed for bankruptcy in 2001.

Born in Brooklyn, N.Y,, in 1939, Steinberg graduated from the Wharton School of the University of Pennsylvania in Philadelphia at the age of 20 with an idea to lease IBM computers. The company he set up for this purpose, Leasco, made him a millionaire by the age of 24.

In 1968, in a move more akin to the large deals seen today by the likes of buyouts firms such as Blackstone Group LP and KKR & Co LP, he took over Reliance, a Philadelphia insurance company 10 times the size of Leasco.

A bid by Steinberg the following year to acquire Chemical Bank, a predecessor of JPMorgan Chase & Co, proved unsuccessful. But his newly created Reliance Group grew as it took on more debt and priced insurance policies cheaply.

In 1984, he made an unfruitful bid for Walt Disney Co but sold his Disney shares back to the company for a $60 million premium in exchange for walking away in a practice that became known as greenmail and was later used by several activist investors.

One of Steinberg's most famous completed deals is Telemundo, which he formed in 1987 by acquiring Spanish language television stations. But he lost much of his assets with Reliance's demise in 2001.

A prolific art collector, Steinberg was a major donor to the Wharton School, where he served as chairman of its board of overseers.

In one of his last deals that symbolized the ascendance of a new generation of dealmakers, Steinberg sold his apartment at New York's exclusive Park Avenue for a reported $37 million to Stephen Schwarzman, Blackstone's co-founder and CEO.

© 2014 Thomson/Reuters. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Gallup Poll: Most Full-Time Workers Put in More Than 40 Hours

Saturday, 30 Aug 2014 21:32 PM

The 40-hour work week is usually regarded as the standard for full-timers, but many adults are working 47 hours or more  . . .

Obama Attends Wedding of Longtime Personal Chef

Saturday, 30 Aug 2014 20:16 PM

President Barack Obama set aside the pressures of the world's trouble spots on Saturday to assume the role of spectator  . . .

Bill Clinton to Speak at Miami Rally for Charlie Crist

Saturday, 30 Aug 2014 19:48 PM

Former President Bill Clinton will be the keynote speaker at a rally in Miami Friday for Democrat gubernatorial candidat . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved