Posts Tagged ‘KKR’

Harley Stock Fever Cools

March 18, 2010

Who is Kohlberg Kravis Roberts & Co. (KKR)?

Investors continued to trade Harley-Davidson (NYSE: HOG) stock in heavier volume than normal on St. Patrick’s Day, but the activity was down sharply from Tuesday’s very heavy activity.

HOG shares were off .17 Tuesday from Wednesday’s close of 28.35 on volume of 4,4558,600 shares, down from Wednesday’s huge volume of 18.4 million. Average daily trading volume over the last three months is 3.6 million shares.

Tuesday’s heavy trading pushed the stock up 1.85 or 7%, but it failed to break the 52-week high of 30.00. The 52-week low is 11.20.

Today’s mid-day trading was in the 28.40 range.

The feeding frenzy was started by rumors that Harley was going to be purchased by Kohlberg Kravis Roberts & Co. (KKR), a huge New York-based private equity firm that specializes in leveraged buyouts (LBO). The international firm, founded in 1976, has more than $50 billion under management and reports it has completed more than $400 billion worth of LBOs.

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Harley Sale Rumors Flying

March 16, 2010

Is Harley-Davidson about to be sold? Could be, because anything is for sale at the right price, but so far the talk is nothing but rumors, and at least one respected securities analyst doesn’t think it’s going to happen.

“In our opinion, any such buyout is highly unlikely ” says Tim Conder of Wells Fargo Securities. “We believe the new management team is highly focused on executing the restructuring of the company. If anything is potentially developing near-term, we believe it could be the company forging a joint venture or fee type of arrangement with a depository institution partner as it relates to HDFS.”

However, HOG shares rose more than 5% to $28.02 today on unsubstantiated rumors the motorcycle maker is the target of a leveraged buyout.

Private-equity firm Kohlberg Kravis Roberts was named as a possible buyer. Officials from KKR and Harley both declined to comment on the rumor.

Trading was three times the normal volume in Harley shares as investors looked for a bargain.

Harley reported a loss of $218.7 million in the fourth quarter. And its new management team has moved aggressively to make changes at the American icon motorcycle company, including dumping two of its motorcycle operations, Buell and MV Agusta. JD

Contact me with story ideas or news tips at 952/893-6976 or jdelmont@dealernews.com.