DJ ABC's US Deal Proceeds Slightly Less Than Expected -...

DJ ABC's US Deal Proceeds Slightly Less Than Expected - Report08/04/2008 08:34AM AEST
MELBOURNE (Dow Jones)--The proceeds from ABC Learning Centres Ltd.'s (ABS.AU) deal to sell a 60% stake in its U.S. business to Morgan Stanley Private Equity will likely be less than originally anticipated, the Australian Financial Review reported Tuesday.

Without citing sources, the newspaper said in its Street Talk column that it seems almost certain proceeds will be less than the approximately US$500 million expected.

This is not to be confused with the US$775 million headline number that is the enterprise value of the entire U.S. business.

But the newspaper said ABC shareholders shouldn't be worried at this stage.

"It is safe to say that the ABC Learning camp would've walked if Morgan Stanley was pushing for a significantly cheaper price," it said.