The largest shareholder in Savvis Communications (SVVS) has reduced its stake in the company, according to filings with the U.S. Securities and Exchange Commission. Private equity firm Welsh, Carson, Anderson & Stowe VIII L.P. has a 36.1 percent stake in Savvis as of May 23, down from a 46.6 percent position back on Feb 21, according to an earlier filing.
Why is this notable? There have been rumors floating around that Savvis might be a buyout candidate, perhaps for a large telco looking for traction in utility hosting. But if Savvis was really for sale, would a private equity firm be lowering its stake? It seems more likely that there’s no deal cooking, and with Savvis shares near their high, it’s a good opportunity to take some profits.
Welsh, Carson, Anderson & Stowe (WCAS) has organized 14 funds, invested in 135 companies and financed more than 650 follow-on acquisitions. Some of its previous investments include in the sector include Amdocs Limited and and SunGard Data Systems, Inc.