Bloomberg News

Blackstone’s Studzinski Says Companies Stopped Relying on Banks

January 26, 2012

(Click DAVOS <GO> for more on the World Economic Forum.)

Jan. 26 (Bloomberg) -- Companies throughout the world learned not to rely on banks in 2008 and have since gathered cash to pursue acquisitions, according to John Studzinski, head of Blackstone Group LP’s advisory and restructuring team.

Companies in North America have amassed about $2.5 trillion in cash and Japanese firms $1.5 trillion since lenders reduced credit lines after the collapse of Lehman Brothers Holdings Inc., Studzinski said in an interview with Bloomberg Television today in Davos, Switzerland at the World Economic Forum.

“Companies stopped relying on the banking system in 2008 and many of them see themselves as having their own banking capabilities,” said Studzinski, a senior managing director at the world’s largest private-equity firm.

This will fuel dealmaking, the banker said. He cited the example of Japanese companies willing to “reallocate a lot of assets outside of Japan” because they realized they couldn’t have “all their eggs in one Japanese basket,” following the Fukushima earthquake.

“It has been a very robust start of the year in North America, China continues to motor at a very good pace,” Studzinski said. “While people are cautious about Europe, while people are sensitive about investing in the euro, they’ve got plenty of things to do in North America, and in Brazil and in Asia.”

--Editors: Steve Bailey, Jon Menon

To contact the reporters on this story: Maryam Nemazee in London at mnemazee@bloomberg.net; Anne-Sylvaine Chassany in Paris at achassany@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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