Cerberus capital reviewing ACS purchase (AP)

The Wall Street Journal, citing people familiar with the matter, reported late Tuesday that Cerberus had sent a letter to a special ACS board committee. “We regret that we must withdraw our offer to acquire the company due to the continuation of poor conditions in the debt markets,” the letter stated. Cerberus spokesman Peter Duda told The Associated Press late Tuesday that he couldn’t confirm the letter or the decision to pull out of the bid. A telephone message left with an ACS spokesman wasn’t immediately returned. Dallas-based ACS competes against larger rivals such as Electronic Data Systems Corp. to handle technology services for other companies. In March, ACS founder and Chairman Darwin Deason and Cerberus announced an offer to buy the company for $59.25 per share, which they raised in April to $62 per share, or about $6.2 billion. In June, ACS agreed to pay Cerberus $7.5 million for two months to solicit other bids. ACS would also pay Cerberus a $15 million breakup fee if it accepted another offer. Deason controls 41.6 percent of ACS voting stock through ownership of preferred shares.