Hedge Funds Have Thrown This Short Seller Targeting NCR Corporation (NCR) A Curveball

That said, the deal, facilitated by JPMorgan Chase & Co, is still in the very early stages and the potential buyers are having a hard time trying to get NCR to accept their proposed $10 billion offer. There are now rumors that other private equity firms could enter the fray and make their own, enhanced offers for the company, including Apollo Global Management. Despite the aforementioned issues at the company, there is clearly an underlying business and operations that can provide value to buyers. The most intriguing business line of NCR Corporation (NYSE:NCR) is its financial services, which at the moment experiences high growth, fat margins, and stable cash flows. Some analysts believe that the company could be attractive to potential buyers solely due to this particular division. Should the $10 billion leveraged buyout eventually be accepted, it would become notable for two reasons: it could be the biggest deal since 2008, and it is very rare to see such private equity giants teaming up. So far, the official representatives from both sides have not commented on the deal and information is mostly coming from anonymous people familiar with the matter.

As of June 12,  NCR Corporation (NYSE:NCR) was more than 30% owned by hedge funds, the most prominent of which from our database were Richard McGuire’s Marcato Capital Management and Barry Rosenstein’s JANA Partners, which owned 10.85 million and 14.81 million shares respectively, as of March 31.

Disclosure: None