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Wednesday, November 20, 2013

Bain Capital ends buyout talks with TI Automotive -sources, (NYSE: OAK)

Private equity firm Bain Capital LLC has ended advanced talks with auto parts supplier TI Automotive Ltd over a possible takeover after failing to meet TI's price expectations of close to $2 billion, according to people familiar with the matter. Bain's decision is a blow to TI Automotive's hedge fund owners, who launched a new effort this summer to sell the business after previous sale talks fell through in 2011.Boston-based Bain sought to pay closer to $1.5 billion in the late stage of the negotiations, lower than TI Automotive's asking price, the people said. It remains unclear what alternative the company will pursue.The people asked not to be named because the matter is not public. Bain and TI Automotive declined to comment.TI Automotive was picked up by a consortium of funds led by Oaktree Capital Group LLC and Duquesne Capital Management LLC in a 2007 debt restructuring. Hedge fund veteran Stanley Druckenmiller wound down Duquesne in 2010.

Oaktree Capital Group, LLC (Oaktree) is a global investment management firm focused on alternative markets. Shares of OAK fell by 1.95% or $-1.05/share to $52.69. In the past year, the shares have traded as low as $40.28 and as high as $59.50. On average, 173871 shares of OAK exchange hands on a given day and today's volume is recorded at 218366.