DJ GE Capital/Comdisco -2: Comdisco Shrs Close At $2.74, Dn 6c
12 Jun 21:47
NEW YORK (Dow Jones)--General Electric Co.'s (GE) GE Capital is in talks with
Comdisco Inc. (CDO) about taking over Comdisco's $5 billion leasing portfolio,
The Financial Times reported on its Web site Tuesday, citing sources close to
the negotiations.
As part of a break-up plan, Comdisco may file for bankruptcy, The Financial
Times said, citing people involved in the discussions.
Comdisco officials weren't immediately available for comment Monday night.
The Financial Times said GE Capital and Comdisco declined to comment.
The Financial Times said Comdisco's auction of its disaster recovery unit is
nearly complete, with possible bidders including International Business
Machines Corp. (IBM), Sungard Data Systems Inc. (SDS) and EMC Corp. (EMC).
On May 3, Comdisco reported a loss from continuing operations of 5 cents a
share for the second quarter ended March 31 and said it suspended its quarterly
dividend.
The Rosemont, Ill, information-technology and equipment-leasing company,
formerly one of the largest investors in high-tech start-ups before it stopped
making new loans, was hurt by the Internet slowdown during the second quarter.
Following the earnings report, one analyst said the company could benefit from
selling its leasing operations, mentioning IBM and General Electric as
potential buyers.
On May 9, Comdisco said it reduced its North American work force by about 250
jobs, or 10%.
Comdisco shares closed Monday at $2.74, up 6 cents or 2.2%. The stock reached
its 52-week high of $33.50 on July 25 and fell to its year low of $1.09 on
April 16.
(END) DOW JONES NEWS 06-12-01
09:47 PM |
