Navigate this market better. Subscribe for FREE stock alerts and information.

Monday, November 25, 2013

Private equity-backed groups vie for IMG as KKR exits-sources, (NASDAQ: CG)

The takeover firms bidding for talent agency IMG Worldwide Inc have all secured partnerships with other companies in the sector after KKR & Co LP exited an auction seen fetching more than $2 billion, according to people familiar with the matter. KKR withdrew last week, leaving Silver Lake in partnership with William Morris Endeavor Entertainment LLC, CVC Capital Partners Ltd in partnership with Chernin Group LLC and Carlyle Group LP in partnership with ICM Partners Inc as the private equity-backed groups in the race, the people said.Private equity firms that own or partner with companies that have synergies with the companies they want to acquire have an advantage in auctions over buyout firms without a strategic angle.KKR was pursuing IMG alone after another buyout firm, New Mountain Capital LLC, dropped discussions about a potential joint bid, the people said on Monday on condition of anonymity because details of the auction are confidential.Final offers for IMG, whose clients include top tennis player Novak Djokovic and supermodel Gisele Bundchen and which owns the rights to numerous sports leagues, are expected by December, the people said.

Shares of CG traded higher by 2.22% or $0.72/share to $33.20. In the past year, the shares have traded as low as $23.85 and as high as $37.89. On average, 463571 shares of CG exchange hands on a given day and today's volume is recorded at 253501.