Cerberus Pulls Bid for Affiliated Computer -- WSJ

The credit crunch has claimed yet another victim as Cerberus Capital Management officially pulled its $6.2B bid for Affiliated Computer Systems. Citing people familiar with the matter, the Wall Street Journal reported that Cerberus officials said in a letter to a special ACS board committee "We regret that we must withdraw our offer to acquire the company due to the continuation of poor conditions in the debt markets." Cerberus made its original $60/sh. bid in March, together with ACS founder Darwin Deason, and ACS formed a special committee to negotiate the deal as well as seek other possible higher bids but the process got bogged down. The buyers sweetened their offer to $62/sh. in April. "Had the special committee engaged with Cerberus and Mr. Darwin Deason on the schedule we proposed in our offer letter, we are confident that our acquisition would have been approved and closed," the Journal further quoted the letter.

Sources: Wall Street Journal
Commentary: Credit-Suisse Smiles on Data Processors Accenture, Cognizant; Frowns on EDS, Affiliated • Affiliated Computer Services Receives Buyout Offer from Founder, Cerberus
Stocks to watch: ACS. Competitors: ACN, CSC, EDS
Earnings call transcript: Affiliated Computer Services F4Q07

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