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Monday, December 22, 2014

Carlyle and Warburg Pincus to purchase credit rating agency DBRS, (NASDAQ: CG)

Carlyle Group LP and Warburg Pincus LLC said they would purchase DBRS Ltd, the world's fourth-largest credit rating agency, in partnership with a consortium of Canadian investors including the firm's founder.Reuters reported earlier this month a private equity consortium of Carlyle and Warburg Pincus was in advanced talks to buy Toronto-based DBRS for more than $500 million.The deal is the second in the credit rating industry this month, after U.S. publisher Hearst Corp said it would raise its stake in Fitch to 80 percent from 50 percent in a deal valued at about $2 billion.Carlyle will fund the deal through its unit Carlyle Global Financial Services Partners II, while Warburg Pincus' investment will come from Warburg Pincus Private Equity XI, L.P.

Shares of CG fell by 2.23% or $-0.613/share to $26.84. In the past year, the shares have traded as low as $25.21 and as high as $39.38. On average, 495720 shares of CG exchange hands on a given day and today's volume is recorded at 225860.