The meaning of the First Data battle

The news that Kohlberg Kravis Roberts has summoned top bankers from the likes of Goldman Sachs and Citigroup to talk about First Data is not a surprise. We've said it all along, all eyes are on this deal (along with TXU). Earlier, there was a concerted effort it seems to spin the Home Depot supply unit deal as more of a special case than some wanted to believe. True, a well-heeled parent company was involved. And yes, the supply market had been hit hard. So there were some unique aspects. The spin was really necessary because the financial sponsors do not want the world to think that every deal is up for grabs now. But it's starting to look that way. For many deals (maybe not all), you can expect a death-march of a negotiation. The stakes are high for all parties. Stay tuned.  

For more:
- here's an update on H&R Block and Cerberus from Business Week Online