In the second
biggest private equity buyout, behind the $45bn paid for the US utility firm TXU,
private equity company Kohlberg Kravis Roberts (KKR)
completed its $26-billion takeover of one of the biggest processors of credit
card payments, First Data Corp.
some time the deal was said to have been in jeopardy as the banks that underwrote
this deal had done so before the credit crunch caused by the spectre of the collapse
of the US sub prime mortgage market.
banks had originally planned to parcel out the debt among other banks. But, with
the turmoil several banks with large exposures in such debt found themselves laden
with an unwanted stock of debt of questionable value, underwritten or backed by
US mortgage financiers in the US, and therefore had been unwilling to stretch
themselves any further.
it had become difficult for banks to spread the huge cost of big acquisition deals
around, it had slowed down the pace of new private equity deals.
had also been some concern about existing deals running into problems, the first
of which was First Data, but the completion of the deal will go some way to calming
also see : General
reports on Financial services