KKR adopts M&A’s new rules in bidding war
28/06/2023 18:44
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Jonathan Guilford
NEW YORK, June 28 (Reuters Breakingviews) - A smaller
private equity shop is gatecrashing Henry Kravis’s firm and its
$1.7 bln deal to buy industrial company Circor. KKR’s response:
offer more certainty, not a better price. Hawkish regulators and
shaky debt markets are changing dealmakers’ priorities.
Full view will be published shortly.
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CONTEXT NEWS
Private equity firm Arcline Investment Management announced
on June 28 that it has submitted a bid for industrials and
defense company Circor International, valuing it at $57 per
share. Circor is under an existing agreement to sell to KKR for
$51 per share, valuing the company at $1.7 billion including
debt.
KKR subsequently reaffirmed its commitment to proceed with
its announced deal, warning that Arcline's investments compete
with Circor, posing a risk that antitrust agencies would block
or significantly delay the rival bidder’s deal.
(Editing by Lauren Silva Laughlin and Sharon Lam)
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