DealZone

KKR’s imagination

September 17, 2009

Nobody can question Eastman Kodak‘s intention in raising some $700 million. Getting a commitment from private equity firm Kohlberg Kravis Roberts to buy up to $400 million of its debt is also a perfectly logical step for the old-economy stalwart as it lumbers into the digital age. What KKR is thinking is another matter.

KKR says the investment reflects its belief in Kodak’s strategy. They’re also getting warrants in Kodak to purchase up to 53 million shares of its common stock. The Wall Street Journal says KKR could end up owning close to 20 percent of the company.

The 24/7 Wall St blog notes that the fall in Kodak’s share price following the news shows the market isn’t blindly convinced of KKR’s intelligence. But Kodak’s bonds got a boost, if for no other reason than there’s a buyer out there.

Nobody has offered much in the way of explanation as to why KKR sees potential in Kodak. Boosters may say most of the company’s restructuring is behind it, but that doesn’t answer the more important question of what lies ahead. Any bright ideas?

Comments
One comment so far | RSS Comments RSS

Here,imagination of getting Kodak into a very big corporate house is practicable in future.
Kodak means photography and excellent photos generation devices for many.
Very sorry to say that,this branded name is suffering for survival to this highly competitive world.
Latest digital map,digital photos, mobile photos and very attractive web cams are available and less maintenance charges for keeping it for years together.
I have observed that,many noted companies are falling like pack of cards .
Because they have not updated their research on new,more consumer friendly products.They thought that,established names will survive on new competition and carry on en cashing it for years together.
Now,this traditional way of business is over.
Kodak name is still in every body!s mind.
If any new,big business enterprise gets entire brand equity and then will be cherished by us for longer years.
Imagination will be put into practice.

 

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