TPG Capital's $800 million deal for hedge fund administrator GlobeOp Financial Services may not be a sure thing.
While London-based GlobeOp has recommended the private equity firm's offer to its shareholders, SS&C Technologies is mulling a competing offer. GlobeOp said that it had provided SS&C information for due diligence purposes, but that it hasn't heard from the firm since then.
But GlobeOp's shareholders have heard from SS&C, which yesterday urged them not to approve the TPG deal, at least until it has a chance to make an offer. SS&C said it has been conducting due diligence since Jan. 14.
"SS&C continues to consider its options in respect of GlobeOp, including a possible cash offer for the company and urges GlobeOp shareholders to take no action at this time," SS&C said in a statement. The firm did say that there was a chance it would not make an offer.
SS&C may be running out of time to block the TPG deal: An offer document from the p.e. giant is expected this month, and shareholders representing about 44% of GlobeOp's outstanding shares are already backing the deal.
GlobeOp put itself up for sale in January due to its low stock price. Under the TPG deal, its current management will continue to run the firm.