Texas Pacific Group

Texas Pacific Group has withdrawn from the bidding for radio broadcaster Clear Channel Communications Inc. in an auction that may fetch about $18 billion, two people briefed on the firm's decision said Wednesday. The withdrawal left Bain Capital and Thomas H. Lee Partners to submit an offer together before Tuesday's deadline for bids, said the people, who declined to be identified. Blackstone Group, Kohlberg Kravis Roberts & Co. and Providence Equity Partners Inc.

Speculation that his job might be in jeopardy was dashed when Metro-Goldwyn-Mayer Studios announced that Harry Sloan had signed a new three-year deal to continue as chairman and chief executive of the struggling studio. Sloan was hired in October 2005 after the studio was sold to an investment consortium that includes Sony Corp. of America, Comcast Corp., Providence Equity Partners and Texas Pacific Group. Sloan recently hired former Universal Pictures movie executive Mary Parent to try to turn around MGM's box-office fortunes.

* J. Crew Group Inc., a closely held casual fashion retailer, said fourth-quarter profit fell 61% as sales of sweaters and jackets declined. Net income fell to $6.7million as sales fell 14% to $246.7 million. * Texas Pacific Group, a private-equity company specializing in the airline industry, agreed to buy Swissair Group's Gate Gourmet catering business for an undisclosed amount.

Private investment companies Texas Pacific Group and Kohlberg Kravis Roberts & Co. are close to a deal to buy Texas utilities giant TXU Corp. in what is expected to be the largest leveraged buyout ever, according to people familiar with the negotiations. The sale, slated to be announced Sunday, will include "not only the acquisition, but some very major announcements related to global warming," one person told The Times.

Texas Pacific Group, the Fort Worth buyout firm that may raise as much as $14 billion for a new fund, hired former WellPoint Inc. Chief Executive Leonard Schaeffer as a senior advisor on healthcare acquisitions. Schaeffer headed WellPoint at the time of its controversial acquisition by Anthem Inc. in 2004. WellPoint is the parent of Blue Cross of California.

Semiconductor maker Zilog Inc. on Monday accepted a $527-million buyout from an investment group led by Texas financier David Bonderman. The agreement calls for Texas Pacific Group, a Fort Worth-based partnership that includes Bonderman and several other former advisors to the Bass family, to acquire a 93.3% stake in Campbell-based Zilog, including 90% of the voting shares.

Speculation that his job might be in jeopardy was dashed when Metro-Goldwyn-Mayer Studios announced that Harry Sloan had signed a new three-year deal to continue as chairman and chief executive of the struggling studio. Sloan was hired in October 2005 after the studio was sold to an investment consortium that includes Sony Corp. of America, Comcast Corp., Providence Equity Partners and Texas Pacific Group. Sloan recently hired former Universal Pictures movie executive Mary Parent to try to turn around MGM's box-office fortunes.

Petco Animal Supplies Inc. said Friday that it had agreed to a $1.68-billion acquisition by two private equity companies, which had previously taken the pet-supplies retailer private in 2000. Shares of the retail chain jumped to $27.89, up $8.44 or 43%. San Diego-based Petco, which operates about 800 stores in 49 states, trails only PetSmart Inc., which has more than 850 stores.

Smurfit-Stone Container Corp. said it had agreed to sell its consumer packaging segment to private equity investor Texas Pacific Group for about $1.04 billion in cash. The company, which is in the midst of a turnaround plan, said it planned to use essentially all of the proceeds from the sale to reduce debt.

Motorola Inc. said it will sell its Semiconductor Components Group for $1.6 billion to Texas Pacific Group of Fort Worth. The division builds parts that support the functions of microprocessors, including transistors that regulate voltage and help chips communicate with one another. "This allows us to focus on the strategy of building high-value-added embedded controllers--systems on a chip," said Charles White, director of industry relations for Motorola's Semiconductor Products Sector.

The newest players in Las Vegas plunked down $17.1 billion on the Strip on Tuesday, as two private equity firms agreed to buy Harrah's Entertainment Inc., the world's largest casino company. In Las Vegas, the new owners will acquire Harrah's holdings, which include Harrah's, Barbary Coast Hotel and Casino, Bally's, Flamingo, Paris and Imperial Palace -- giving it a 350-acre stretch along the Strip.

Harrah's Entertainment Inc., the world's largest casino company, has agreed to a $16.7-billion offer from two private equity firms, two people with knowledge of the negotiations said. The agreement with Apollo Management and Texas Pacific Group came late last week but lawyers for both sides have been working out the details, said the sources, who spoke on condition of anonymity because of the sensitivity of the talks.

Private equity firms Apollo Management and Texas Pacific Group were near a deal Sunday to buy Harrah's Entertainment Inc., with an announcement possible today, sources familiar with the situation said. The Wall Street Journal reported on its website that the offer would be worth at least $90 a share, or $16.7 billion, based on 186 million shares outstanding. Such a deal would be expected to make the acquisition one of the 10 largest corporate buyouts by private equity firms this year.

Qantas Airways Ltd. has agreed to a sweetened $8.7-billion buyout offer led by Macquarie Bank Ltd. and private equity firm Texas Pacific Group, sources said today. The offer of 5.60 Australian dollars a share, 10% above Qantas' last trade, was unanimously endorsed by the Qantas board after the bidders dropped their demand for a breakup fee, sources close to the transaction said. The board had rejected an offer of 5.50 Australian dollars on Wednesday.

Sabre Holdings Corp., parent of the online travel-booking service Travelocity.com and a leading distributor of airline reservations, said Tuesday that it was being acquired by private equity groups for about $4.5 billion. Consumers should not be affected by the change in ownership, analysts said. Silver Lake Partners and Texas Pacific Group would pay $32.75 a share in cash for the company, which connects airline, hotel and car-rental inventories with travel agents.

Texas Pacific Group has withdrawn from the bidding for radio broadcaster Clear Channel Communications Inc. in an auction that may fetch about $18 billion, two people briefed on the firm's decision said Wednesday. The withdrawal left Bain Capital and Thomas H. Lee Partners to submit an offer together before Tuesday's deadline for bids, said the people, who declined to be identified. Blackstone Group, Kohlberg Kravis Roberts & Co. and Providence Equity Partners Inc.

J. Crew Group Inc. plans to raise $220 million as part of a plan to buy out some of its founders as it continues talks to be acquired by Texas Pacific Group of Fort Worth. J. Crew plans to raise the money in two private placements. The first is a $155-million private placement rated "Caa1" by Moody's Investors Services and the second involves $65 million and is rated "Caa2." The ratings reflect risks associated with the company's plan to add clothing colors and styles.

Fort Worth-based Texas Pacific Group and other investors agreed to buy Del Monte Foods Co., one of the largest U.S. canned fruit and vegetable companies, for about $800 million in cash. Del Monte, which had sales of about $1.2 billion last year, is owned by a financial group led by Merrill Lynch & Co. The purchase price was confirmed by Andrew Hawkins, finance director of Del Monte Group Ltd., a separate Del Monte company. Texas Pacific and Del Monte declined to comment.

Apollo Management and Texas Pacific Group raised their offer for Harrah's Entertainment Inc. to $15.5 billion after the company's board rejected their first bid, people familiar with the situation said Wednesday. The buyout companies increased their offer for Harrah's, the world's biggest casino operator, to $83.50 a share from $81, said the people, who declined to be identified because the proposal wasn't being publicly disclosed.