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DealZone

Behind the deals and deal-makers

August 25th, 2008

Not for sale, honest

Posted by: Phil Wahba
Tags: DealZone

mgm.jpgAfter a New York Post article reported that Hollywood studio MGM had retained investment bank Goldman Sachs to look into a possible sale or capital raising, the studio issued a statement that it was not for sale. MGM, however, may look at “enhancements” to its long-term capital structure.

Private equity sales to strategic buyers have become a silver lining in an exit environment made difficult in part by a weak IPO market, writes the Wall Street Journal’s Deal Journal. According to Dealogic, U.S. sales to corporate buyers by PE firms are up 46 percent from a year earlier.

CNBC reported that private equity fund Kohlberg Kravis Roberts was in the lead in bidding for Neuberger Berman, beleaguered investment bank Lehman Brothers’ “crown jewel,” its asset management unit.

OTHER DEALS OF THE DAY

** Infosys Technologies, India’s No. 2 software services exporter, said it had agreed to buy UK-based consultancy services firm Axon Group Plc in an all-cash deal valued at 407.1 million pounds. ($753.1 million)

** Norwegian solar industry group Renewable Energy Corporation (REC) plans to build its next silicon materials plant in Bécancour, Quebec in Canada with a goal of starting production in 2012, REC said on Monday. A final investment decision will be made after preliminary engineering is completed, but REC’s investment in the plant is assumed to be at least $1.2 billion, Chief Executive Erik Thorsen said.

** Chip maker Broadcom Corp said it would buy Advanced Micro Devices Inc’s digital television chip business for $192.8 million in cash to enter the market for cheaper television sets. After the deal, Broadcom would be selling chips for television sets with screens of up to 20 inches priced around $200 to $300.

** Q9 Networks Inc, which provides data centers and network management services to other companies, agreed to be bought by private-equity firm Abry Partners in a cash transaction worth about C$361 million ($345 million), the companies said on Monday. Boston-based Abry, through its affiliate CDC Acquisition Corp, will buy all of the outstanding common shares of Q9 for C$17.05 each.

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