WebMD had apprehensions about joining HLTH, which has $650 million in long-term debt, because HLTH admitted it was finding it difficult to sell its Porex plastics business unit. A potential buyer for Porex had difficulty finding credit financing.
It's not just HLTH feeling sick about its busted transaction.
Trash hauler Waste Management Inc. on Oct. 13 abandoned its hostile $6.73 billion offer for smaller rival Republic Services Inc., blaming the economic climate. Just one month earlier, HSBC Holding plc was spooked by the global financial crisis, pulling its troubled $6.3 billion bid to buy a 51.02% stake in Korea Exchange Bank from Lone Star Funds.
Then there's American International Group Inc. Once the largest U.S. insurer, the New York-based company fell to its knees with its investments in credit default swaps. And now AIG seems to be having trouble selling some of its units to pay back its $85 billion government loan because of, yes, again, the slowing economy. - Gerald Magpily
See Dealscape: Thawing credit markets increasing confidence in bank debt
See Dealscape: Waste Management withdraws $6.7B offer for Republic
See Dealscape: Has AIG's asset sale stalled?
Comments
I wonder if the current economic situation is the real reason some of these deals aren't going through, or just an excuse for companies to back away from what they've come to realize is a bad deal. The comment about WebMD having "apprehensions" makes me believe that it might be more of the latter.