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Wednesday, September 3, 2014

Carlyle, Fountainvest exit $1.9 billion bid for Shanda Games, (NASDAQ: PWRD)

Private equity firms Carlyle Group and Fountainvest Partners have pulled out of a consortium backing a $1.9 billion bid to purchase U.S. listed online games developer Shanda Games Ltd, Shanda said on Sept. 3. China online game developer Perfect World Co Ltd and China-focused private equity firm Primavera Capital have also exited the consortium, the company said.The defections raise doubts over the future of an up to $850 million leveraged takeover loan which was being raised from banks to back the buyout.Shanda Interactive Entertainment Ltd and an affiliate of Primavera, which together held 76.2 percent of Shanda, in January had offered $6.90 per American depositary share to buy the company, valuing it at $1.9 billion.Rival Giant Interactive Group Inc had received a go-private offer in November from Chairman Yuzhu Shi and an affiliate of Baring Private Equity Asia, valuing the company at about $2.8 billion.

Perfect World Co., Ltd. is an online game developer and operator in People?s Republic of China. Shares of PWRD traded higher by 1.0% or $0.21/share to $21.23. In the past year, the shares have traded as low as $16.26 and as high as $26.25. On average, 370777 shares of PWRD exchange hands on a given day and today's volume is recorded at 335026.