WRAPUP 1-KKR may reevaluate KPE takeover, values fall

Mon Mar 2, 2009 11:06pm GMT
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* KKR, KPE mulling 'advisability' of takeover deal

* KKR's IPO plans hinge on KPE takeover

* PE fund KPE's portfolio value down 50 pct on year

* Debt fund KFN skips dividend, shares tumble

* American Capital, Allied post losses (Adds details from KFN earnings, KPE conference call, background about industry, American Capital, Allied results, Blackstone fund details)

By Megan Davies

NEW YORK, March 2 (Reuters) - Kohlberg Kravis Roberts & Co's [KKR.UL] Amsterdam-listed fund, KPE, said on Monday KKR was reevaluating a deal to buy out the fund, throwing doubt on KKR's plans for a U.S. stock listing.

KKR's plans to become a publicly-traded company hinge on the deal to buy the fund and, if that transaction is scrapped, the listing would be thrown into question.

Since the plans were announced in July, the financial markets and global economies have deteriorated dramatically, making it far less attractive for a company to go public.  Continued...

 
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