Harman buyout may be at riskThe private equity firms buying the firm are feeling less upbeat about the deal, according to the Wall Street Journal.LONDON (CNNMoney.com) -- Another private equity deal may be in jeopardy. The Wall Street Journal reported Friday that the buyers of electronic equipment maker Harman International Industries (Charts) have soured on the $8 billion deal amid the credit crunch. Kohlberg Kravis Roberts and the private equity arm of Goldman Sachs (Charts, Fortune 500) agreed to buy Harman in April. But flagging debt markets, along with lackluster results from Harman, are making them feel less upbeat on the deal, the newspaper said. A tightening in the credit markets has cast doubt on several pending private equity deals. The higher cost of financing these deals has put pressure on buyout firms and their banks to renegotiate deals. Some deals have already been reworked. Last month, Home Depot (Charts, Fortune 500) agreed to sell its wholesale supply unit to private equity firms for about 17 percent less had been originally agreed. Other deals are expected to follow suit. The New York Times on Thursday said that the group of private equity firms buying Sallie Mae (Charts, Fortune 500) is seeking a lower price for the college loan provider. |
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