- Last Updated: 10:26 AM, August 17, 2012
- Posted: 11:36 PM, August 16, 2012
The Carlyle Group is trying to drive down its nearly $5 billion bid for DuPont’s auto paint business.
The private-equity titan outbid rivals to purchase one of the biggest suppliers of auto paints and finishes earlier this month, but it still had to finalize the terms of the deal.
Now Washington powerhouse wants to negotiate down the price of the deal to between $4.2 billion and $4.3 billion, sources told The Post.
Carlyle remains in exclusive talks to buy the paint division in what would be one of the biggest leveraged buyouts of the year, although there’s no guarantee a deal will get done, sources said.
After submitting the winning bid, Carlyle found out that it offered roughly $600 million more than runner-up Apollo Global Management, according to sources.
Typically, there is no legal liability to lowering a bid before signing a merger agreement, but there is a risk if a firm gets a reputation for last-minute maneuvering.
Carlyle has struck several multibillion deals this summer, most recently a $3.3 billion deal for stock-photo company Getty Images.
The PE firm may be racing to invest its current fund while it trying to persuade investors to commit to a new vehicle, a source said.
Carlyle could also be lowering its offer because it believes global demand for paint, sealants and other chemical products has peaked.
Sentiment has been growing in the last few weeks that there is a slowdown in Asian manufacturing. Carlyle and DuPont declined comment.