https://www.kleenkuip.com/forum/ Copyright (c) 2006-2013 Web Wiz Forums - All Rights Reserved. Sat, 04 Apr 2026 17:51:09 +0000 Mon, 04 Dec 2006 23:17:38 +0000 http://blogs.law.harvard.edu/tech/rss Web Wiz Forums 12.06 360 https://www.kleenkuip.com/forum/RSS_post_feed.asp?TID=3230 https://www.kleenkuip.com/forum/forum_images/web_wiz_forums.png https://www.kleenkuip.com/forum/ https://www.kleenkuip.com/forum/forum_posts.asp?TID=3230&PID=74059&title=potential-100-billion-leveraged-buyout#74059 Author: dennis_is_ok
Subject: 3230
Posted: 04/December/2006 at 11:17pm

    NEW YORK — Shares of Home Depot Inc. may give back gains on Monday, after the home improvement retail giant said it hasn't had any talks regarding a private-equity takeover.

On Friday, rumors swirled of a potential $100 billion leveraged buyout, sending the stock up nearly 3 percent to close at $38.97 on the NYSE. But after the market close, Home Depot said in a regulatory filing it hasn't had any discussions about selling the company, and the company's board said it "unanimously supports the management team."

In a note to clients, Morgan Stanley analyst Gregory Melich said he doesn't believe Home Depot is worth chasing at $39 on buyout speculation. Goldman Sachs' Matthew Fassler agrees, noting that while the economics of a deal work, the company _ with healthy margins and a need to reinvest in its stores _ is not an optimal candidate.

Fassler also thinks size may be a barrier to any deal, saying a Home Depot buyout would be the largest in history, thereby testing the appetite of the fixed income markets.

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