LBO firms to sell part of TDC stake

COPENHAGEN: Blackstone Group LP, KKR & Co and three leveraged buyout (LBO) firms that bought Denmark's TDC A/S in Europe's biggest LBO at the time are preparing to sell part of their stake, five people familiar with the plans said.

The firms will interview banks before the end of this month to arrange the stock sale next year, said the people, who declined to be identified because the talks are confidential. The companies may sell part of their 88 percent stake in TDC, valued at about $7.4 billion, while the Copenhagen-based phone company may also offer new stock to raise cash, the people said.

KKR, Blackstone, Apax Partners LLP, Permira Advisers LLP and Providence Equity Partners Inc acquired Denmark's biggest phone company in 2006 with about $3 billion of cash from their funds and about $12 billion of debt. TDC has since reduced its debt by half, cut jobs and sold assets, including its stake in Polish mobile phone services provider Polkomtel SA and its Hungarian phone and cable unit. The firms are preparing the sale after the MSCI World Index of equities in 23 developed markets posted an eight-month, 68 percent surge.