Cerberus to acquire DynCorp for $1 billion

Cerberus Capital Management LP CBS.UL said on Monday that it would buy defense contractor DynCorp International Inc (DCP.N) for about $1 billion in cash in one of the biggest leveraged buyouts of a publicly traded U.S. company since the global financial crisis. Under the deal approved by DynCorp's board, shareholders will receive $17.55 in cash for each share of international common stock, a premium of about 49 percent from Friday's closing price of $11.75. Including the assumption of debt, the deal is worth about $1.5 billion. But a lawmaker seeking to phase out the use of private security contractors in war zones and a watchdog group were concerned. They said DynCorp going private would limit their ability to keep tabs on a company that has faced allegations of misconduct in the past and has big contracts to train Iraqi police and support U.S. troops in Afghanistan.