PE Not The Worst When It Comes To Bid Withdrawals

Despite its bad reputation for backing out of deals, private equity has managed to avoid Thomson Reuters’ list of the largest withdrawn M&A bids. It was released today in honor of the largest pulled bid of all time, BHP Billiton’s $188 million offer for Rio Tinto.

The entry level price for the list is $54 billion (a French deal), which means even BCE, at $46.8 billion, wouldn’t have qualified had the consortia walked away. So in a quasi-PR win, PE gets a pass today. Baby steps.

For posterity’s sake, thus far in Q4, the US has had $362 billion in deal announcements and $322 billion in cancellations, according to Thomson Reuters. That looks pretty bad compared with last quarter, where a mere $110 billion worth of deals were canceled, with $649 billion completed. The hope is that any deal with a sliver of a chance of getting done will get pushed through by the end of the year, which could help that near 1:1 ratio. BCE is the remaining go-go era holdover deal that has yet to close.

Download the accompanying chart here:

Top Ten Withdrawn Deals, All Pending Deals, and YOY Comparision of Completed/Cancelled Deals