Cerberus Capital Management LP has withdrawn its longstanding $6.2 billion buyout offer for Affiliated Computer Services Inc., according to a Wall Street Journal report, seven months after first striking the agreement. The firm blames credit market conditions, while shareholder unrest has also brewed for months.
ACS' buyout is the latest deal to hit the skids amid credit market and shareholder turmoil. Bethpage, N.Y.-based Cablevision Systems Corp.’s $22 billion management-led buyout proposal was shot down by shareholders last week. Kohlberg Kravis Roberts & Co. and Goldman Sachs Capital Partners agreed to invest $400 million in Washington-based stereo equipment maker Harman International Industries Inc. to avoid paying a $225 million breakup fee that stems from abandoning their $8 billion buyout. The $29 billion JC Flowers & Co. LLC-led buyout of Vienna, Va.-based student lender SLM Corp., or Sallie Mae, is in litigation. — Carolyn Murphy
Go to TheDeal.com story Oct. 3 on shareholder unrest
Go to TheDeal.com story March 20 about the initial Cerberus-ACS deal
Go to TheDeal.com pipeline story about recent stalls
