Harman International Acquisition Collapses
Harman International was told late Friday that the deal by two Wall Street giants to purchase the electronics firm for $8 billion had collapsed. The private equity firm Kohlberg Kravis Roberts (KKR) and Goldman Sachs’ GS Capital Partners VI Fund informed Harman that they were pulling out of the transaction, Forbes reported on its Web site.
According to a Harman statement, KKR cited a “material adverse change” in Harman’s business as its reason for quashing the deal, although Harman disagrees that such a change has taken place. A source told the Associated Press that the deal’s demise has more to do with Harman than it does with the credit crunch that has adversely affected the private equity industry in recent months.
The deal’s collapse comes from two days after it was approved by a European Union panel.