China in auto power play
It might not shake up the industry just yet, but China's interest in Volvo and Saab is the start of something big in global autos, writes columnist Wei Gu. Commentary
Sale of Home Depot supply unit in doubt: report
NEW YORK (Reuters) - A private equity-led buyout of home-improvement retailer Home Depot Inc's (HD.N) wholesale supply division, due to close on Thursday, could be in trouble because investment banks involved are reluctant to fund the transaction even at a lower price, the Financial Times reported in its online edition, citing people familiar with the negotiations.
Home Depot earlier in the month said it was in negotiations with buyers -- Bain Capital Partners, Carlyle Group CYL.UL and Clayton, Dubilier & Rice -- about restructuring deal terms, including lowering the unit's $10.3 billion sale price.
New terms, designed to make it easier for Merrill Lynch MER.N, Lehman Brothers LEH.N and JPMorgan (JPM.N) to finance the deal amid turmoil in credit markets, may not be enough however, according to the newspaper.
The report said negotiations on Wednesday looked like they could spill over to Thursday -- the day the deal is scheduled to close.
But people familiar with the talks said parties hoped to reach a deal for the unit, which supplies materials to home builders and other contractors, the FT said.
A spokeswoman for Home Depot declined to comment.
The sale is drawing interest because rocky credit markets have raised questions about dealmakers' ability to secure funding for leveraged buyouts.
(Reporting by Lilla Zuill)
