U.S. equity firm backs away from Agfa Healthcare takeover

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Agfa Healthcare no longer subject to takeover bid. Source: Agfa Healthcare  

Cerberus Capital Management, a New York City-based venture capital group, has ruled out the acquisition of Agfa-Gevaert's healthcare unit as too risky, according to L'Echo, a Belgium daily newspaper.

The private equity firm believes the worsening economic conditions and the division’s declining revenues mean the deal looks too high-risk, Thomson Financial reported.

In December 2007, reports suggested that Ceberus, which acquired a majority interest in the Chrysler Group in May 2007, was interested in a whole or part takeover in the healthcare sector of Agfa. Thomson reported some sources state that Cerberus may still be interested in Agfa's graphics division.

Late last year, De Standaard put the value of the imaging group at €2.6 billion ($3.78 billion), according to Thomson.