Saturday, May 26, 2012

PE biggies offered $200M to avoid trial




Buyout titans dangled more than $200 million in front of investors in hopes of settling a long-running bid-rigging suit before it goes to trial, The NY Post has learned.

Former shareholders in companies acquired by the biggest private-equity firms rejected the settlement offer last month, setting the stage for a courtroom showdown, a source said.  “There have been big numbers bandied about,” the source added. “The offer was hundreds of millions.”

A federal judge is expected to rule soon on whether to certify the case as a class action — a move that could significantly raise the stakes and the potential damages, sources said.  The defendants include no less than the biggest-private equity firms, including Apollo Global Management, Bain Capital, Blackstone, Carlyle and KKR….

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