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NCR: Deal or no deal?

A new report in the ongoing NCR sale saga has the company's rumored bidders balking at its rumored asking price of $10 billion.

June 26, 2015

Last week's rumors had private equity firms Carlyle and Blackstone bidding $10 billion to buy NCR. This week, word on The Street has them backing away from the deal.

According to the New York Post, inside sources say the company has not provided enough information to make financing the deal possible.

According to the Post report:

Opaque and aggressive accounting issues have complicated NCR’s valuation as the company has been trying to move into the future of automated pay systems through several acquisitions that haven’t worked out.

Financial analysts are pegging the company's real value at $6–$6.5 billion, based on Ebitda of $700 million to $1 billion. Under Fed guidelines, financial institutions may only lend up to 6.5 times the company's Ebitda, the Post said.

Multiple media sources have said that activist shareholders are pushing for the sale of NCR. However, CEO Bill Nuti dismissed the idea during the company's Q1 earnings call, and NCR has declined comment on all recent rumors about a buyout. With a reported deadline of July 8 for binding bids, rumors might be all it ever amounts to.