New York Post reported:
Buyout titans dangled more than $200 million in front of investors in
hopes of settling a long-running bid-rigging suit before it goes to
trial, The Post has learned.
Former shareholders in companies
acquired by the biggest private-equity firms rejected the settlement
offer last month, setting the stage for a courtroom showdown, a source
said.
“There have been big numbers bandied about,” the source added. “The offer was hundreds of millions.”
A
federal judge is expected to rule soon on whether to certify the case
as a class action — a move that could significantly raise the stakes and
the potential damages, sources said.
The defendants include no less than the biggest-private equity firms,
including Apollo Global Management, Bain Capital, Blackstone, Carlyle
and KKR.
They made the settlement offer as a consolidated group, the source said.
Shareholders
allege that the firms teamed on deals, including the buyouts of
Univision, Harrah’s, Toys ‘R’ Us, Sabre and Alltel, so they would not be
competing against each other and could keep prices artificially low.
