Washington - Five months after announcing the deal, Harman International Industries, a manufacturer of audio products and electronic systems, said that a group of private equity firms have backed out of their $8 billion acquisition of the company.

According to a statement by Harman, Kohlberg Kravis Roberts (KKR) and GS Capital Partners claim that "a material adverse change in Harman's business has occurred, that Harman has breached the merger agreement and that they are not obligated to complete the merger."

The firms first announced the deal in August.

Stockholders were to receive $120 in cash for each of their shares with the company, which has about 10,500 employees.

Harman's brands include Harman Kardon, JBL, Mark Levinson and Infinity.

Shares of Harman fell nearly 5% by midday Monday, after falling 13% on Friday.

Related Links:
http://biz.yahoo.com/bw/070921/20070921005595.html?.v=1

http://www.harman.com