KKR, Goldman Bail on Harman
Updated from 9:44 a.m. EDT
Audio system maker
Harman International
(HAR)
on late Friday confirmed that two potential buyers intended to pull out of an $8 million buyout deal.
Kohlberg Kravis Roberts and
Goldman Sachs
(GS) - Get Report
told the company they believe "a material adverse change" had affected Harman's business and that the company had breached the merger agreement, Harman said in a press release shortly before the closing bell.
Harman said it "disagrees that a material adverse change has occurred or that it has breached the merger agreement."
The company's shares had plummeted more than 20% Friday, after
The Wall Street Journal
, citing sources familiar with the deal, reported KKR and Goldman were having second thoughts.
Shares fell $23.45 to $88.80.