Home Depot (HD) CEO Downplays LBO Speculation - Paper

According to reports from the Atlanta-Journal Constitution, Home Depot (NYSE: HD) CEO Bob Nardelli downplayed speculation that the company was the target of a takeover by private equity firms.

Nardelli told the paper, "somebody is probably running the number on us on any given day." He also said the media reports are, "an unfortunate distraction."

Recent reports from the New York Post suggested buyout firms Kohlberg Kravis Roberts and Texas Pacific Group have explored the possibility of a record $100 billion leveraged buyout of the home improvement giant.

Shares of Home Depot are 3.8% higher in mid-day action Friday.

Link to AJC.com article

Home Depot (HD) Higher As LBO Talk Gains Steam

Shares of Home Depot Inc. (NYSE: HD) are 4% higher in early action as LBO speculation gains steam. A takeover of the home improvement giant would seem completely far-fetched not so long ago, but with the activity and wealth of private equity buyers, analysts now say a deal could make sense.

Recent reports from the New York Post, suggest private equity firms including KKR have held talks with investment banks about structuring the deal.

DealScape Comments on Lampert Speculation

DealScape blog comments on the rampant speculation related to hedge fund guru and Chairman of Sears Holdings (Nasdaq: SHLD) Eddie Lampert's next move. The blog notes recent speculation that Lampert could buy Safeway Inc. (NYSE: SWY), Gap (NYSE: GPS), Home Depot (NYSE: HD) or Anheuser-Busch (NYSE: BUD).

The blog said a deal with BUD or SWY are the most absurd. The blog said GPS or HD are far better options.

Commenting on their own list of possible alternative targets for Lampert, the blog said Foot Locker (NYSE: FL) and Pier 1 (NYSE: PIR) would be the ones to watch.