KKR delays merger with European fund KPE, again

Reports suggest that KKR has again delayed plans to merge with its Amsterdam-listed fund KKR Private Equity Investors (KPE).

KKR has reportedly put off its plans until 31 August to continue "evaluating the advisability of the transaction."

Having originally announced its intention to float in July 2007, KKR revised the plans in July 2008 and announced a deal that would see the firm first acquire KPE before listing the combined entity on the New York Stock Exchange. This was later delayed in November 2008, with the firm citing ongoing market volatility as a result of the economic downturn.

Shares of KPE have seen their value slide by 74% in the last year and are now trading at $3.75.

KKR has marked down several of its investments recently, including German broadcaster ProSiebenSat.1 Media AG and Dutch chip-maker NXP Semiconductors. There have been reports that the firm has asked LPs in its European Fund II, a EU^R4.5bn vehicle closed in November 2005, to provide up to EU^R400m in additional equity capital to fund potential restructurings and support existing investors.

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