Lenders won't participate unless Cerebrus puts up more. That probably spooked market and drove BBY share price down since Cerebrus is major player in BBY LBO. However, they are now free to focus on BBY, which is a much more interesting and potentially rewarding risk. Also, Schulze willing to put up his 20% stake and there are a billion in foreign assets that could be sold for down payment as well, unlike SVU with tons of debt.. Knee jerk market reaction. Up tomorrow
Its amazing they would even attempt a LBO on SVU. Best Buy is a steal of a deal in comparison. I think shorts manipulated the news and started the rumor on BBY. I have to agree with you on that they will be able to focus more on BBY if the SVU deal falls through (which it looks like it very may well).