Back in October 2007, Silver Lake and TPG took Avaya private in an $8.2 billion deal. While the transaction involved a good amount of debt, it looks like the company has firepower. That is, Avaya has agreed to pay $900 million for Nortel Network's Enterprise division (the transaction will also involve $15 million in employee retention payments).

The transaction was the result of an auction, which appears to have had some juice. Keep in mind that Avaya's original bid was for $475 million.

Continue reading Avaya scoops up Nortel's telecom unit for $900M

Avaya scoops up Nortel's telecom unit for $900M originally appeared on BloggingStocks on Mon, 14 Sep 2009 13:20:00 EST. Please see our terms for use of feeds.

eBay Inc. (NASDAQ: EBAY) announced Tuesday it has reached a deal to sell most of its stake in Skype in a deal that values the online telecommunications service at $2.75 billion. eBay will get $1.9 billion in cash and a $125 million note from the buyer.

An investment group led by the private-equity firm Silver Lake, including Index Ventures, Andreessen Horowitz, and the Canada Pension Plan Investment Board, will buy the 65% stake in the company. eBay, which will retain a 35% stake, expects the deal to close in the fourth quarter of this year.

Continue reading eBay strikes a good deal on its Skype sale

eBay strikes a good deal on its Skype sale originally appeared on BloggingStocks on Tue, 01 Sep 2009 11:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that TPG Capital and Silver Lake are poised to buy telecommunications equipment company Avaya Inc (NYSE: AV) for about $17 a share; Nortel Networks Corporation (NYSE: NT) was also said to be interested.
• News Corporation's (NYSE: NWS) Rupert Murdoch said he is willing to go along with tighter editorial independence, but won't give in to a key demand from Dow Jones & Company Inc's (NYSE: DJ) controlling Bancroft family that they control an editorial oversight board that would protect this, the Wall Street Journal reported.
• Barron's Online's Trader section believes Service Corporation International's (NYSE: SCI) 90% surge since August is the result of funeral service companies' virtual immunity to a slowing economy or rising rates - the market's two biggest fears right now.

• The New York Times reported that software maker Cadence Design Systems Inc (NASDAQ: CDNS) is in talks with private-equity players that include Kohlberg Kravis Roberts and the Blackstone Group about a possible sale of the company.
• Technology Web sites have discovered that Apple Inc (NASDAQ: AAPL) embeds customers' personal data into files the company uses to distribute music from its online iTunes music store, creating fears about privacy, the UK Times reported.
• The UK Times also reported that Royal Bank of Scotland Group (OTC: RBSPY) may be looking to sell Southern Water for GBP4B, a move that could lead to many more deals in Britain's privatized water industry.

Newspaper wrap-up 6-04-07: TPG Capital, Silver Lake may buy Avaya originally appeared on BloggingStocks on Mon, 04 Jun 2007 09:15:00 EST. Please see our terms for use of feeds.

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Heinz-(NYSE: HNZ) out of the money May 50 calls active; HNZ trades to Record. HNZ is recently up $1.35 to $48.28. Nelson Peltz, an activist shareholder, has been a holder of HNZ shares over the last 20-months in an attempt for HNZ to lower annual costs, sell assets and return more to shareholders. HNZ May 50 calls have traded 254 times on transaction volume of 5,990 contracts above its open interest of 402 contracts. HNZ May 50 calls are bid .35 cents, near its theoretical value of .35 cents according to Track Data, suggesting non-directional price fluctuations.

Advanced Micro-(NYSE: AMD) calls active, May option implied volatility increases to 46. AMD, a global semiconductor company, is recently up .64 to $14.56. On 12/1/05 Silver Lake and Kohlberg Kravis Roberts formed Avago Technologies through the acquisition and carved out of the Semiconductor Products Group from Agilent Technologies, Inc. (NYSE: A) (formerly a division of HPQ) for $2.66 billion, one of the largest private equity buyouts of a semiconductor company. AMD call option volume of 52,272 contracts compares to put volume of 28,105 contracts. AMD May option implied volatility of 46 is above yesterday's level of 43 and its 26-week average of 43 according to Track Data, suggesting slightly larger price risks.

Option volume leaders today are: Yahoo (NASDAQ: YHOO), Motorola (NYSE: MOT), Amgen (NSDAQ: AMGN) and Intel (NASDAQ: INTC).

Option update 4-18-07: HNZ calls active as HNZ trades to record price originally appeared on BloggingStocks on Thu, 19 Apr 2007 15:15:00 EST. Please see our terms for use of feeds.

On March 30, private equity firms Silver Lake and Texas Pacific Group completed the buyout for Sabre Holdings. The company has a variety of travel assets, such as Travelocity, Sabre Travel Network and Sabre Airline Solutions.

The deal required $5.4 billion in financing (including fees). Here's the break-down:

Deal background:

Over the past few years, there has been lots of dealmaking in the travel industry. But perhaps the factor that encouraged Sabre to sell out was Blackstone's $4.3 billion buyout of Travelport in June.

By September, Sabre's bankers - Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS) - started to place calls to several private equity firms. There was also interest from a strategic party.

By December, Sabre received two formal bids. But it was the offer from Silver Laek/TPG that was the most attractive. The price was for $32.75 per share.

According to the valuation from Goldman Sachs, here's how the deal stacks up with other transactions:

For more news and views about private equity, please see BloggingBuyouts.

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

Sabre Holdings buyout a done deal originally appeared on BloggingStocks on Thu, 05 Apr 2007 17:09:00 EST. Please see our terms for use of feeds.