Forstmann Little Made Timely Exit From Cidco Debt

Forstmann Little, one of the largest buyout firms in the U.S. quietly exited a $150-million convertible debt investment in Cidco Inc, a week before the Morgan Hill-based company said fourth-quarter earnings won’t meet expectations. That ended a relationship announced with much fanfare in June that could have given Forstmann a 19% ownership interest in the nation’s largest maker of caller ID equipment. The firm has had three straight quarters of disappointing earnings.