KKR and Goldman Capital Take Out Harman International Industries For $8 Billion

Harman International Industries' board unanimously approved a buyout by private equity firm Kohlberg Kravis Roberts and Goldman Sachs' private equity division GS Capital Partners, for approximately $8 billion. The offer represents a 17% premium over Wednesday's closing price; shares shot up $19.94, or 19.44%, to $122.50 in trading Thursday, above the offer price of $120 per share. Shareholders have two alternatives: they can either take $120 per share they own, or as an alternative, Harman shareholders can exchange their stake for shares in the new corporation to be incorporated by KKR and GS Capital Partners, not to exceed 8.3 million shares, or $1 billion in equity. Harman's board now has 50 days to solicit higher buyout offers. The company said it won't disclose developments in the solicitation process until something has been finalized. Dr. Sidney Harman, Founder and Executive Chairman, will continue to lead the company after its sale. Harman believes the agreement "is in the best interest of our stockholders, presenting them with excellent value for their shares and the opportunity to participate in Harman's future growth."

Sources: Press Release, Bloomberg, New York Times, MarketWatch, Financial Times, Business Week
Commentary: Harman International Looks Ready To Rock • Harman International: An Untold Auto Parts Growth Story • Cramer's Take on HAR
Stocks/ETFs to watch: Harman International Industries Inc. (HAR), Goldman Sachs (GS)

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.