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TPG out-of-focus on JVC deal

Posted Jun 6th 2007 5:29PM by Tom Taulli (RSS feed)
Filed under: Private Equity, Sony Corp ADR (SNE)

Since the early 1990s, private equity firm TPG has built a great reputation with turnarounds. One marquee deal was Continental. TPG has also been quite savvy with high-tech targets. For example, the firm is in the process of buying Avaya Inc. (NYSE: AV).

But, it's not a complete cake-walk for TPG. Take a look at the firm's $560 deal to buyout consumer electronics company, JVC. The issue? Well, lenders are backing off. After all, interest rates have been rising.

What's more, JVC is still deteriorating. They are in a tough marketplace and must compete against biggies like Sony Corporation (ADR) (NYSE: SNE).

Although, a deal still may get done. Apparently, Cerberus may be a suitor.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.