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TPG is causing some consternation in the UK. You see, the private equity firm has agreed to invest £179 million in Bradford & Bingley (B&B), which is a beleaguered financial institution.
Essentially, B&B investors are worried that TPG has structured an airtight deal to prevent other bidders from coming to the table. Another concern is an antidilution clause (which protects TPG if B&B's stock price falls).
In fact, shareholders will vote on the deal on July 7th. So yes, there should be some drama.
And, TPG isn't taking any risks. Actually, the firm plans to go on a major roadshow with investors. I'm sure it will be intense – but helpful.
However, it looks like B&B is in a tough spot. In light of the deterioration of its business, the firm needs to work fast. And, if the TPG deal falls through, it's a good bet that B&B's stock price will go into a tailspin.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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