Friday, September 23, 2011

BofA Seeks $800 Million in Deal to Sell Pizza Hut

Bank of America Corp. , the lender divesting assets to raise capital, is in exclusive talks to sell its stake in the biggest U.S. Pizza Hut franchisee for more than $800 million, two people with knowledge of the discussions told some of Bloomberg's best.

Two private-equity firms teamed up to bid for NPC International Inc., which operates 1,140 Pizza Hut restaurants, said the people, who declined to be identified because the talks are confidential. One hurdle in closing the transaction is arranging debt financing for Overland Park, Kansas-based NPC as credit markets for buyouts tighten, the people said.

“They’ve got to do two things -- reduce riskier assets and continue to reallocate capital to other businesses,” said Jonathan Finger, whose family-owned investment company, Finger Interests Ltd., owns 1.1 million Bank of America shares. “These asset sales achieve both those goals, it’s a step in the right direction to slim the company down.”

Bank of America CEOh Brian Moynihan has agreed to sell almost $50 billion in assets and units ahead of stricter international rules on capital.

Read all about it at http://www.bloomberg.com/news/2011-09-22/bank-of-america-said-to-seek-800-million-in-sale-of-pizza-hut-franchise.html

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