AUSTRIA - Cerberus takes BAWAG in Austria's largest ever buyout

Although the sellers have not disclosed the consideration, it is believed the purchase of Austria's fourth-largest bank is valued at around EUR 3.4bn. Other unsuccessful parties in the competitive pitch process include private equity fund Lone Star and German state-owned bank BayernLB.

Cerberus, formerly a distressed-debt investment firm, now has a strong focus on hedge fund as well as private equity transactions. The firm, which has experience in turnaround investments in various sectors, is reportedly intending to inject an extra EUR 600m in equity to boost the bank's struggling balance.

Earlier this year, the private equity firm led the buyout of General Motors' banking arm GMAC for $14 bn. Rumor has it that Cerberus will use BAWAG as GMAC's European banking headquarters.

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• Buyouts
• DACH