If At Once You Don’t Succeed… PE Firms Look Anew at Fidelity National

A second run at buying Fidelity National Information Services will likely face the same problems that doomed the first one.

TPG Capital is trying to revive its $15 billion offer for the payment processing giant, the New York Post is reporting. The deal originally went south after Fidelity National had the audacity to seek a higher offer (peHUB has learned that it was TPG partner Blackstone who initially walked away).

If true, TPG will probably look to hook up with the original investor group, which includes Blackstone and THL Partners. Of course, there could be a change and one of the sponsors may drop out or a new one will come in.

But what’s really interesting is whether other deal details will remain the same. The original bid included a $10 billion financing package spread through seven banks, including J.P. Morgan, Citigroup and Credit Suisse. At the time, press reports said the loan package was in place.

But market conditions have changed, and that $10 billion might be tougher to secure. “The high yield market has been improving in the past few days but it’s still more volatile than when the deal started,” one banker said.

In the original deal, the bidding group was in talks with other sponsors or LPs to syndicate a chunk of the equity, but the deal failed before those discussions were finalized.

And then there is Warburg Pincus, a 10% Fidelity National shareholder that is said to oppose a deal. It doesn’t have the power to veto any transaction, but Warburg could make things tough to secure the percentage of shareholders needed to approve a sale. “Warburg was going to lobby against the deal and they could lobby to get others to do it,” a second banking source said.

Warburg and TPG declined comment. Officials for Fidelity National, Blackstone and THL could not be reached.