If you are getting sick of private equity mergers blowing, it might be interesting to take a look at several private equity buyouts that look like they will actually close. After looking through some of the mergers out there, there are several deals in the pending category that don't have much failure risk. Maybe there is no sure thing, but these look like they may actually close:
Covad Communications Group Inc. (AMEX: DVW) up over 2% to $0.97, with $1.02 buyout price. This is one I have noted before after speaking with both Covad and with Platinum Equity. This one is close to a sure thing after it cleared reviews today.
Getty Images Inc. (NYSE: GYI) was trading at $31.98 versus its $34.00 buyout offer. I have noted that Getty is being sued over the process or the price, but in all honesty shareholders that look at today's world will know what better shape this will be as a private company. This was our best "industry de-merger" call in 2007. Either way, shareholders should feel lucky that Hellman Friedman wants it at all.
Performance Food Group Co. (NASDAQ: PFGC) was up $0.31 to $32.82 late in the day, and the buyout price of $34.50 is still more than 5% above today's prices. Its anti-trust review period has passed this week in the buyout by affiliates of The Blackstone Group and a minority interest held by a private investment fund affiliated with Wellspring Capital Management LLC. Shareholders still have to approve the deal. But on the private equity firm side getting the deal closed for a food distribution group shouldn't see too many "material changes in business" excuses.
The good news is that most of the giant multi-billion club deals that were on shaky ground have come unraveled already. The bad news is that credit is tighter and many bankers and private equity executives have a bad taste in their mouth right now.
Despite deal implosions galore, these private equity buyouts should actually close (DVW, GYI, PFGC)
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