Friday, April 27, 2007
Harman International Industries has agreed to be acquired by KKR and Goldman Sachs for $7.8 billion. What makes the deal unusual is that current shareholders will have the choice of taking $120 cash or shares in the new company in exchange for their stock. Public shareholders will not own more than 27% of the new company; if too many shareholders want stock, the stock participation will be prorated. The shares will not be traded on an exchange. The stock option may be to avoid criticism over the price that has persisted in the proposed Clear Channel Communications buyout. See WSJ, Unusual Buyout
Offers a Piece To Shareholders.