Last week, Dealscape highlighted a PE Hub posting that discussed the
possibility that buyout firms are holding back when making offers in large
take-privates.
If anyone had doubts they were, then perhaps comments at The Deal's Private
Capital Symposium will change their minds.
When asked the same question during "The Outlook for Private Capital" panel,
Karim
Assef,
head of financial sponsors at Bank of America Corp., said PE firms
are indeed holding back when making first offers in the event they need an
extra push. However, earlier in the afternoon, The Deal editor John E. Morris
highlighted that second offers during go-shop periods have remained rare.
Obviously, other firms back off when an offer is accepted, so why hold back?
The panel addressed the issue, explaining that shareholders may demand more.
However, at the end of the day, sponsors will pay fair market value, said
co-panelist Andrew Brownstein, partner at Wachtell, Lipton, Rosen & Katz.
—Matthew Wurtzel
See
earlier post
See
other PC Symposium posts
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