Fidelity National consortium not to bid: source

By Megan Davies

NEW YORK (BestGrowthStock) – A consortium that had considered buying Fidelity National Information Services Inc (FIS.N: ) decided not to bid for the bank services company, a source familiar with the situation said on Monday.

Blackstone Group LP (BX.N: ), TPG Capital LP (TPG.UL: ) and Thomas H. Lee Partners were in talks to buy the company, sources familiar with the situation previously told Reuters.

Fidelity’s board had wanted a substantial increase in the price that the consortium was not prepared to meet, the source said. The exact price the board wanted was not revealed.

A leveraged buyout for Fidelity could have been worth around $15 billion, a source previously told Reuters, or about $32 a share. Fidelity, valued at around $11 billion, has $3 billion of debt, according to its latest quarterly report.

The payment processing company said in a statement earlier on Monday that its board, through a special committee advised by Goldman Sachs (GS.N: ), was evaluating strategic alternatives.

Those included a potential leveraged buyout opportunity that was proposed or a leveraged recapitalization with a share repurchase, it said.

Fidelity’s shares fell about 7 percent to $26 in after hours trading.


(Reporting by Megan Davies; editing by Andre Grenon and Carol Bishopric)

Fidelity National consortium not to bid: source