Another One Bites The Dust: Acxiom Buyout Called Off ValueAct Capital Partners LP, Silver Lake Partners, Merrill Lynch and UBS To Pay Break-Up Fee

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Blood from the burgeoning buyout bust continues to flow. This morning Axciom Corp announced that the private-equity buyers who had agreed to a $2.25 billion purchase of the company had called off the deal.
Apparently, the buyers, the banks financing the deal and the company have reached an agreement to pay a portion of the original breakup fee. According to Acxiom they will pay just $65 million, down from the original $110 million.
Perhaps most surprising, two of the banks that were financing the buyout are paying a portion of the breakup fee. This suggests that the banks had put pressure on the buyers to scuttle the deal. This is the first time we've ever heard of banks paying part of a buyers breakup fee. If it sets a precedent for more deals, it could make the unwinding of some of the troubled LBO deals easier than many feared.
Acxiom Buyout Plan Is Canceled [Wall Street Journal]

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