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Harman’s shares plunged 21% earlier in the day after The Wall Street Journal
reported that the buyers were "balking" at going through with the transaction.
Trading in the stock was halted about one hour before Harman’s announcement. Harman said KKR and Goldman claimed that a material adverse change in Harman’s
business meant they weren’t legally obligated to complete the deal. Harman
disputed that argument. There were rumors Friday that Harman had lost some or all of its contract with
Mercedes-Benz, Harman's number one customer, accounting for about 25% of
Harman's nearly $3.6 billion in net sales. In its most recent 10-K, Harman said that the loss of sales to DaimlerChrysler LLC would "have a material adverse effect on our consolidated sales, earning and financial position."
KKR and Goldman declined to comment, and a Harman spokesman did not return
calls. —Vipal Monga, David Carey and John E. Morris See TheDeal - Sept. 21 article See Wall Street Journal article See The Deal - April 27th article CategoriesPrivate capital video
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Harman International Industries Inc. said Friday afternoon that buyout firms
Kohlberg Kravis Roberts & Co. and Goldman Sachs Capital Partners plan to
walk away from their $8 billion acquisition of the car stereo maker.
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