The Curse of Hawaii hits Carlyle

When William Kennard, the former Federal Communications Commission chairman and now a managing director at The Carlyle Group, announced plans for the private equity firm to take over Hawaiian Telecom, he had high hopes.

Unfortunately for both Mr. Kennard and Carlyle, Hawaiian Telecom has yet to produce the much-vaunted results. While he apparently remains undeterred, this high profile deal could affect Mr. Kennard’s reputation as a dealmaker and as a possible future candidate for public office, BusinessWeek asserts.

The outcome at Hawaiian Telecom will also be watched closely by the private equity industry. Many of the firms, awash in cash, are eyeing opportunities in telecom. There are roughly 900 independent regional and rural telephoen companies in the United States and many of them are suffering problems similar to those at Hawaiian Telecom.

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