Why so many PE deals are blowing up?

This question was addressed by jack and Suzy Welch. Reference Mint, Campaign, 10 Dec 2007, Page C8

They say material adverse change clause is being invoked by buyers due to the credit constraints they are facing now. The MAC clause is vaguely worded and they emphasize on CEO taking interest in the contract till the last word rather than leaving it to lawyers. When stakes are high, you have no choice but to be there till the end.

Possible litigations mentioned:

Sallie Mae, Inc. vs. JC Flowers & Co., PE firm
United Rentals vs. Cerberus capital management, PE firm

Private Equity Deal News India

25 June 2007 Economic Times Page 20

Blackstone's acquisition of Intelenet last week $200 million deal. It is one of the top 5 PE deals in the country so far.

1. $900 mllion buyout of Flextronics by KKR
2. $650 million for 5.6% stake in HDFC by Carlyle

It is the second largest PE deal in BPO space
first one sale GE in its Indina BPO arm Genpact 60% stake sale for $500 million to GAP and Oak Hill.
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