As the first major private deal to fall apart since the current credit turmoil began, the breakup may encourage other equity firms to bail out of deals that have become less profitable because of the rising cost of financing, analysts told The Post.
Kohlberg Kravis Roberts and Goldman Sachs accused Harman of breaching a clause in the contract, which Harman denied, The Post reported. Neither side elaborated.
Harman's stock plunged 24 percent in regular trading Friday and dropped another 3 percent after hours.
Sidney Harman, 88, and the husband of Rep. Jane Harman, D-Calif., in the last 50 years has built his company into a multibillion-dollar manufacturer of high-end audio names like JBL, Harman Kardon and Infinity.