Tenneco (NYSE:TEN) and Atlas Air Worldwide (NASDAQ:AAWW), both in deals to be acquired by private equity firm Apollo Global (NYSE:APO), fell amid investor concern on the deals in light of current market volatility.
Tenneco (TEN), which agreed to a sale to Apollo for $20/share in late February, fell 2.1% as some investors may be concerned about financing/terms of the deal, according to traders. The move in the auto parts supplier comes after the shares gained 3.1% on Monday after Tenneco and Apollo filed with European antitrust regulators for the deal, which many M&A investors had been waiting to happen.
On Thursday Bloomberg reported that banks are set to start a $5.4 billion debt sale in mid-October to finance Apollo's (APO) planned purchase.
On Friday, the Financial Times reported that Citigroup (C) is said to plan to cut back the amount it lends to asset managers, including private equity firms, amid new capital rules. Citi plans to cut its lending for what is known as "subscription-line financing" to about $20 billion in coming months from about $65 billion.