Sale of IBM Unit May Be Held Up by Financing Snag

The proposed sale of International Business Machine Corp.’s typewriter, keyboard and printer businesses for more than $2 billion has run into serious hurdles in arranging financing, sources familiar with negotiations said Tuesday.

But they said the parties involved are keen to close the deal and predicted that the problems would likely be surmounted.

In a memo Tuesday, IBM informed the Lexington, Ky.-based employees of the units that it expects the deal to go through.

IBM Chairman John Akers announced Aug. 1 that the company would sell a majority stake in the low-technology businesses to Clayton & Dubilier Inc., a New York firm that specializes in leveraged buyouts.

Spokesmen for both firms said talks are continuing and they are optimistic that the deal can be completed, but declined to comment on financing details.

But sources familiar with the proceedings said tighter lending policies at major banks for leveraged deals were forcing some adjustments to the deal.

IBM, for example, announced recently that certain intermediate range printer operations would be moved from Lexington to its Endicott, N.Y., facilities, which IBM called a strategic decision by the head of the new venture.

The sources said lenders may require further changes to the businesses, which analysts say have became expendable to IBM because of their slim profit margins.

“The deal is progressing,” “ said IBM spokesman Peter Thonis. “We’re working through issues . . . financing is something that is being pursued obviously, but I don’t think it is considered a problem.”

A Clayton & Dubilier spokesman said, “The parties are working on successful completion of the transaction but financing is still under negotiations.”

The C&D; spokesman said the parties are making progress and putting together financial statements necessary to present to lenders, adding that “taking intermediate printers out of the transaction was viewed as positive from C&D;’s view.