SunGard Data Systems Inc., a leading supplier of integrated software and processing solutions to the financial services industry, agreed to be acquired by a consortium of private equity firms for $11.3 billion. The buyers are led by Silver Lake Partners of Menlo Park, Calif., which specializes in technology companies, and include Bain Capital; Kohlberg Kravis Roberts; Goldman Sachs Capital Partners; the Blackstone Group; Providence Equity Partners; and Texas Pacific Group. SunGard, based in Wayne, Pa., itself has bought dozens of companies in recent years to better compete against IBM and other rivals.
The problems of American International Group deepened as the Securities and Exchange Commission subpoenaed as many as a dozen of its executives in an ongoing investigation of the insurance giant's accounting practices. The development comes on top of the resignation two weeks ago of AIG chief Maurice (Hank) Greenberg and the ouster of two other senior administrators for refusing to cooperate in the probe. Another close associate of Greenberg was forced out over the weekend, The Wall Street Journal reported. Greenberg is due to provide a sworn deposition April 12 to New York Attorney General Elliot Spitzer (D), who also is investigating AIG's business dealings. Greenberg remains the nonexecutive chairman of the company, but its directors reportedly are considering stripping him of that title as well, especially if he declines to be deposed by Spitzer. Or he could choose to retire, which would preempt the AIG board, the Journal said. Meanwhile, findings from AIG's own internal investigation of the accounting problems were expected to be presented to investors for the first time Monday. The findings could require adjustments to the balance sheet of up to $2 billion, the Financial Times reported.
Ford Motor Co. denied published suggestions that it is considering shifting production of luxury-class Jaguar cars from Britain to the US for financial reasons. But the Big Three automaker is in discussions over how to inject almost $1 billion in new capital into the money-losing brand, the Scotsman and Sunday Times (London) reported. Figures for the 2004 business year have yet to be posted, the Sunday Times said, but they are expected to be comparable to those of the year before, when Jaguar reported $1.1 billion in red ink, including a write-down in the value of its assets. Last September, Jaguar announced the closure of one assembly plant, resulting in the layoffs of 1,150 employees. Ford bought Jaguar in 1989 for a reported $1.6 billion.