The Red Herring about the Sun/KKR-Deal
Under the headline “Barbarians on a Leash - Sun solicited KKR cash, but curbed further investment.” the Red Herring tries to give some explanations about the Sun/KKR-Deal announced last week:
In answer to the most pressing question, Sun officials say this deal will not be the prelude to an exit from the public markets. In fact, the deal’s fine print includes a “standstill agreement” that bars nine-month-old KKR Private Equity Investors, the publicly traded arm of KKR, from acquiring more than 5 percent of Sun shares through the close of the deal in 2014.
An interesting tactic to keep private equity companies at bay: Other companies won´t invest, as KKR is already there with a convertible debt and KKR can´t buy more than 5 percent.