Tuesday, January 29, 2008

For private-equity firms, it's no longer a done deal

January 28 - USA Today - Private-equity buyers didn't see a company they didn't want to own last year. Now, some don't want to see the ones they agreed to buy.

Amid a credit crunch that makes it harder for private-equity firms to borrow money needed to pay for takeovers, a weaker economy and other concerns, some deals are stalling.

Alliance Data said Monday that its $6.4 billion buyout by private-equity firm Blackstone may not proceed. Also Monday, Sallie Mae, the nation's top student lender, said it's giving up on collecting a $900 million fee owed by J.C. Flowers, ending a dispute started when the private-equity firm pulled its $25.6 billion buyout in December. Read More.

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