There is a lot of talk in the press and blogosphere that a
number of big buyout deals may be called off as banks seek to renegotiate
terms as illustrated by
last
month's rumors about the TXU Corp. buyout. The Wall Street Journal's Deal
Journal blog believes the common wisdom that a buyout firm can't walk away
from a deal because it will kill the firm's reputation is overrated. To
illustrate its point, Deal Journal highlights an 11-year-old deal between
Xerox Corp. and Kohlberg Kravis Roberts & Co. that the buyout firm called
off. Indeed, it's true that KKR went on unscathed in the long run. Meanwhile,
BusinessWeek
offers a list of megadeals that may not close. Not making the BW list is
Tribune Co., but it's worth noting that The New York Times questions its
future. —Matthew Wurtzel
