The largest shareholder in
Savvis Communications (SVVS) [1] 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 [2].
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 [3] (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.
Rich Miller is the founder and editor-in-chief of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.
Article printed from Data Center Knowledge: http://www.datacenterknowledge.com
URL to article: http://www.datacenterknowledge.com/archives/2007/05/30/welsh-carson-reduces-savvis-stake/
URLs in this post:
[1] Savvis Communications (SVVS): http://www.datacenterknowledge.com/archives/savvis-index.html
[2] earlier filing: http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070525:MTFH27465_2007-05-25_15-17-54_WNAS2516&type=comktNews&rpc=44
[3] Welsh, Carson, Anderson & Stowe: http://www.welshcarson.com/
[4] Rich Miller: http://www.datacenterknowledge.com/archives/author/richm/
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