KKR Abandons Harman Buyout

Kohlberg Kravis Roberts and Goldman Sachs today called off their deal to buy out audio giant Harman International for $8 billion. The firms announced that a "material adverse change in Harman's business has occurred,'' one of the limited circumstances in which they could abandon the deal without getting stuck with a $225 million break-up fee, Bloomberg reports.

The news caused Harman's stock to plummet 26% despite a statement that it disagreed with the assessment. The $120-a-share deal had dictated that the buyers could not cite a slowdown in the audio industry or overall economy as reasons for scotching the deal, but worries about the credit crunch may nonetheless be behind the pullout. (More KKR stories.)