Private equity deals tumble
Big drop in buy-outs
Despite recent high-profile moves for ITV and HMV, the Centre for Management
Buy-Out Research has revealed that UK private equity buy-outs in the first half
of 2006 reached just £10.1bn compared with £12.8bn for the same period of 2005.
This contrasts with a 70% jump in deals made on mainland Europe.
The research suggests that UK shareholders have become more resistant to
private equity bids.
Tom Lamb, co-head of Barclays Private Equity, which co-sponsored the
research, said private equity in the UK was a ‘bit of a victim of its own
‘In the UK investors now feel that a company must be undervalued if a private
equity bidder shows an interest,’ he added.