Private equity firms may buy out Avaya for $8 billion, say reports

Our Corporate Bureau
04 June 2007

The two private equity firms are in a leading position to buy Basking Ridge, New Jersey-based communications systems maker Avaya for about $17 per share, The Wall Street Journal reported in its online edition.

The offer of $17 per share would represent a 6 per cent premium over Avaya''s previous close of $16.08. The company''s stock had jumped 15 per cent last week to its highest level since 2005.

With $5.12 billion in sales last year, Avaya''s software, hardware and multimedia telecommunication systems provide communication networks to businesses and government agencies.

Reports, also hinted that if the bid falls off Avaya could fall into the hands of another suitor, such as Canada''s Nortel Networks.

Buyout firms globally have engaged in 993 deals this year valued at about $450 billion, according to Bloomberg data, following last year''s record $701.5 billion.

Fort Worth, Texas-based TPG, formerly Texas Pacific Group, had raised $15 billion last year.