Harman Agrees to $8 Billion Buyout

KKR and GS Capital Partners have agreed to acquire Harman International Industries Inc. (NYSE: HAR) for approximately $8 billion. Harman stockholders would have the option to either receive $120 per share in cash, or to exchange some of their shares for shares in the newly-formed private company. The total number of Harman shares that can elect to participate in the stock swap is approximately 8.3 million, or $1 billion (27% equity position, following the transaction). Leverage is being provided by Bank of America Securities LLC, Credit Suisse, Goldman Sachs and Lehman Brothers. Bear Stearns is advising Harman on the sale. Harman is a manufacturer of audio products and electronic systems for the automotive, consumer and professional markets. www.harman.com