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 .


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.

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

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.