Cerberus Backs Off Agfa-Gevaert

Cerberus Capital Management has decided not to press ahead with its plans to bid for the healthcare business of Belgian imaging technology group Agfa-Gevaert. According to sources, the US investor believes the worsening economic conditions and the division's declining revenues mean the deal looks too risky.

Last December, Cerberus was linked with a possible buyout of the whole of the Belgian group, or some of its parts. Some of today's reports state that Cerberus may still be interested in Agfa's graphics division.

Late last year, De Standaard put the value of the imaging group at EUR 2.6bn (US$3.78bn).

Source: Thomson Merger News