A spokesman for Avaya was cited as saying in a report from Barron's the company, as a matter of policy, did not comment on rumor and speculation. Clayton, Dubilier & Rice also didn't immediately respond to a request for comment from Barron's.
Avaya's sale to CD&R would allow all its shareholders to cash out and values the company at a significant premium to where its shares are trading, sources were cited as saying in a separate report from Reuters.
The company's debt pile of $3.2 billion and its challenging business outlook have made a leveraged buyout difficult for many private equity firms, the news report added.
On Aug. 13, Avaya reported a fiscal Q3 loss of $5.70 per diluted share, wider than a loss of $0.80 per share a year ago. It expects fiscal 2019 revenue in the range of $2.90 billion to $2.92 billion, which is below the $2.94 billion average analyst estimate compiled by Capital IQ.
Despite the jump in its share price, Avaya still traded close to the bottom end of its 52-week price range of $10.23 - $23.40.
Price: 13.87, Change: +1.44, Percent Change: +11.58
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