This may be old news but it is good to keep it in focus
CHILDCARE operator ABC Learning Centres may finalise a deal with Morgan Stanley on the sale of its US assets by the end of this week, a person familiar with the situation said yesterday.
"They're hopeful of finalising things in a matter of days rather than weeks," the source told Dow Jones Newswires.
ABC signed an agreement with Morgan Stanley on March 5 to sell a 60 per cent stake in its US business, raising about $750 million to reduce debt.
Morgan Stanley's exclusive due diligence period expired last week, but talks between the two parties have continued.
Shares in ABC learning have been savaged since its first-half net profit fell 42 per cent.
The sell-off prompted margin calls on stock owned by directors, including chief executive Eddy Groves, which worsened the rout.
Morgan Stanley, the second-biggest US securities firm, said it had an average of $US125 billion ($137.4 billion) in cash and marketable securities in reserve in the fiscal second quarter after strengthening its balance sheet.
Dow Jones Newswires, Bloomberg
ABS
a.b.c. learning centres limited
