Updated with opening share price.
Gabelli, Chairman, CEO and CIO of Gamco Investors (GBL), says he has known KKR co-founder Henry Kravis since 1979, when both men were in their mid-thirties. An analyst at the time, Gabelli wrote a report on Houdaille Industries, a public company in which clients of his were invested.
|Kravis on Gabelli: "Who the hell are you?"|
Soon after he wrote the report came KKR's then-historic buyout of the Fortune 500 conglomerate, and Gabelli took out a ad in The Wall Street Journal."My ad was very tiny. It was like 140 bucks. I said 'Congratulations to my friends at Houdaille, and thanks to Henry Kravis, we made money.' He [Kravis] calls me up and says 'Who the hell are you?' I said 'Henry we went to Columbia business school two years apart. I'm older than you. Stop! And so we've done a lot of things together over the last 30 years." Still, Gabelli did not buy shares of KKR & Co. Guernsey (KPEQF.PK), the offshore KKR vehicle that is being merged into the new U.S.-listed company, until they were near their historic lows in the $2-$3 range during the worst days of the 2008 crisis. Gabelli says he added to that allocation Tuesday morning, when the shares were above $10. According to Thomson Reuters data, Gabelli's Gamco Investors Inc. owns about $12 million worth of KKR & Co. Guernsey, making it the 10th largest shareholder. That stake amounts to just half a percent of the company.
|Gabelli on Kravis: "He's got an ego."|
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