Airlines, Casinos, Newspapers – unexpected industries and candidates are hit by the private equity wave. For sometime there is an expectation that private equity players shall make big moves in the tech sector. Intergraph got acquired by private equity players recently. This article believes that companies like EMC, Yahoo, Dell could be up for grabs and the current marketcaps? Hold your breadth – EMC @29.6 billion, Dell @58.5 billion & Yahoo @ 34.6 billion. Limited debt, healthy cashflows, businesses that can be spun-off/isolated for sale or further growth are all common reasons.
I agree with the reasoning & logic – mouthwatering for private equity biggies. Sometime back even Intel was considered a potential candidate for private equity play. My take : unlikely as things stand – except in the case of Yahoo, which could get caught in some takeover talks – private equity or otherwise. What’s your take?
Category :Private Equity, Emerging Trends
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