Through The Fly's Eyes: Performance Food Group
Performance Food Group Shares Fizzle as Takeout Speculation Quiets
The air is out of the shares of Performance Food Group (PFGC) -- shares are trading down about 6% today, after takeover speculation slowed.
According to a report on Bloomberg late yesterday, U.S. Foodservice has postponed its planned sale of $650 million in senior notes, which was expected to be used to finance the company's leveraged buyout by a private equity consortium consisting of Kohlberg Kravis Roberts & Co. and Clayton Dubilier & Rice Inc. U.S. Foodservice, a unit of Royal Ahold NV (AHO), was expected to be acquired by KKR and Clayton.
While this is not a direct jab at Performance Food, shares of the company have traded up in sentiment and some observers think Performance could be the next LBO candidate. But as CNBC's David Faber commented this morning, "it may be quiet in LBO land for a while."