By AnnaMaria Andriotis and Miriam Gottfried

Private-equity firm Carlyle Group Inc. and Singapore sovereign-wealth fund GIC Pte. Ltd. are backing away from a deal to take a 20% stake in American Express Global Business Travel, whose revenue has plummeted as a result of the coronavirus pandemic, according to people familiar with the matter.

The deal, announced in December, values the company at $5 billion including debt. It was scheduled to close Thursday but representatives for Carlyle and GIC informed AmEx Global Business Travel on Wednesday they wouldn't participate in the closing, the people said.

AmEx Global Business Travel, which is 50%-owned by American Express Co., offers airfare and hotel-booking services mostly to large and midsize businesses. In 2014 the credit-card giant sold the other half to a group led by investment firm Certares. Carlyle and GIC, along with a group of others, agreed to purchase a portion of that stake last year.

An entity acting on behalf of the sellers filed a motion this past week in Delaware Chancery Court against Carlyle and GIC, calling for it to compel the duo to proceed with the purchase.

If the deal is scuttled, it would be the latest high-profile transaction to fall apart as a result of the pandemic. On May 4, L Brands Inc. and private-equity firm Sycamore Partners said they were scrapping plans to take Victoria's Secret private, a decision that came after Sycamore filed a lawsuit to try to cancel the deal.

Write to AnnaMaria Andriotis at annamaria.andriotis@wsj.com and Miriam Gottfried at Miriam.Gottfried@wsj.com

(END) Dow Jones Newswires

May 09, 2020 09:56 ET (13:56 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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