Home Depot may lower price for unit

The home improvement retail chain could reportedly take $1.2 billion dollars less in a deal that still hangs in the balance for its wholesale distribution unit .

August 23 2007: 10:17 PM EDT

NEW YORK (CNNMoney.com) -- Home Depot was close to taking $1.2 billion less for the sale of its wholesale distribution unit Thursday night, but the deal with three private-equity firms is still uncertain according to a published report citing people familiar with the matter.

Three major banks - J.P. Morgan Chase (Charts, Fortune 500), Lehman Brothers (Charts, Fortune 500) and Merrill Lynch (Charts, Fortune 500) - continue to balk over financing as they prepare for possible related lawsuits, according to The Wall Street Journal.

Risk returns with a vengeance

Home Depot's (Charts, Fortune 500) deal with Bain Capital, Carlyle Group, and Clayton, Dubilier & Rice was originally priced at $10.3 billion. The Journal reported that people involved in the buyout said there was a rush of negotiations to salvage the sale, and that it could still close before its Thursday deadline.

The recent squeeze in the credit markets has turned into a full-blown crunch, with financing for leveraged buyouts, such as the deal for Home Depot's distribution unit, at a near standstill. Top of page

Credit turmoil throws deals in jeopardy

Housing woes hammer Home Depot, Wal-Mart
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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2012 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2012 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2012. All rights reserved. Most stock quote data provided by BATS.
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