Carlyle buys CommScope

PRIVATE equity firm Carlyle Group clinched a $2.9bn (£1.8bn) deal to buy communications cable maker CommScope, and analysts see little likelihood of rival bids emerging.

Carlyle, which has a checkered history on telecoms deals, is offering $31.50 a share in cash, a premium of 36 per cent to CommScope’s closing price on Friday.

CommScope has a “go-shop” period until 5 December, during which rival bidders can submit offers.

“We believe this scenario is unlikely given the absence of any bids thus far, the speed by which this agreement has been reached, and the $43m break-up fee CTV would be obligated to pay if the deal were not executed,” KeyBanc analyst Anthony Kure said in a research note.