What's happening: Shares of ATM specialist NCR Corporation (NYSE:NCR) plunged by as much as 12% today following reports that the company may no longer be seeking to sell itself. Earlier this year, the company reportedly began exploring "strategic alternatives," which is a common euphemism for possibly trying to sell itself to the highest bidder. The gloomy news today is that The New York Post is exclusively reporting that the sale is about to fall through after the parties could not agree on a price. By 1:30 p.m., the stock was down 9.3%.
Why it's happening: Earlier this month, Reuters reported that private equity firm Thoma Bravo was putting together a $9 billion bid. Thoma Bravo was reportedly already in discussions with numerous banks to secure financing in what would have been the largest leveraged buyout year-to-date. NCR and Thoma Bravo are allegedly now "pencils down" since no agreement can be made on price. Other private equity firms like Carlyle and Blackstone have already backed away, and Thoma Bravo was the last major potential suitor. If Thoma Bravo is indeed out of the picture, NCR may end the auction process altogether since it can't find a buyer at an agreeable price. This comes just days after the company reported earnings that included a hefty non-cash charge related to settling its pension plan.
Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool recommends NCR. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.