Working Weekend

[Monday update] It looks like negotiations on the Home Depot Supply sale will drag into the weekend, as the three-headed monster continues to bicker with itself.

One head is Home Depot, which was the first to blink by entertaining the notion of a $1.2 billion price reduction. It seems that its entertainment is serious enough to be deemed an upper-crust dinner party, although not yet quite a Schwarzman birthday party.

Next up are the private equity firms: Bain Capital, Carlyle Group and Clayton, Dubilier & Rice. It seems they only recently became aware of something called a “housing bubble” — and now are horrified that it married a credit crisis. If only they hadn’t outbid the CCMP Capital and Thomas H. Lee Partners…

The buyout firms would owe around $300 million if they bail. More specifically, their limited partners would owe around $300 million. That’s why they’re reportedly talking about sharing the pain with…

Head #3: The banks. This is where stuff reportedly has gotten particularly sticky, with JPMorgan, Lehman Brothers and Merrill Lynch balking at the revised terms. They also didn’t see the housing troubles coming (funny, my friends who aren’t in finance did). Dennis Berman has done the best reporting on this so far, and now reports that the lawyers have been brought in.

Hopefully someone has Nixon Peabody. Then everyone will be a winner… Wow, it’s going to be a long weekend.