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July 25, 2008 12:20:29 PM CDT

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Banks Might Derail Home Depot Deal

Posted Aug 24, 07 7:10 AM CDT in US,  Business 

(Newser) – The pending sale of part of Home Depot took an ugly turn last night as three banks and three private equity firms entered into a showdown over financing. Home Depot dropped its asking price by over $1 billion, but the banks involved—JPMorgan Chase, Lehman Brothers and Merrill Lynch—have threatened to withdraw from a deal that may become the  first casualty of the credit crunch.

In years past banks have happily funded-private equity buyouts at handsome terms, but the current crisis has left them with a $300-billion backlog in deals to be funded. Even after Home Depot's price drop the banks remain reluctant, and Bain Capital, Carlyle Group and CD&R, the three private equity firms at the table, have threatened a lawsuit.

Source Wall Street Journal

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Adventures at Home Depot   ((c) billypalooza)
The Home Depot store is shown in this Aug. 13, 2007 file photo in North Miami, Fla. (AP Photo/Wilfredo Lee, file)   (Associated Press)
Home Depot Logo   ((c) Neubie)
Home Depot Logo   ((c) Neubie)
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credit crisis  • private equity  • Merrill Lynch  • JPMorgan Chase  • buyout  • Lehman Brothers  • Home Depot  • Bain Capital  • Carlyle Group


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