Comments on: KKR makes $700 million investment in Sun

By: Sramana Mitra

Sramana Mitra — Thu, 25 Jan 2007 04:58:50 +0000

May be, Jonathan just wants to get to know George Roberts, and pave way for a PE job later

By: Cameron Bahar

Cameron Bahar — Wed, 24 Jan 2007 20:59:29 +0000

Well it paves the way for KKR to take Sun private. Private equity is flush with cash and they need to spend it. Sun is a potential candidate. Buy low, sell higher.

By: Eugene Cook

Eugene Cook — Wed, 24 Jan 2007 05:25:03 +0000

@MATT

No, he DOESN’T need it is the point.

There is a different from want and need, the distinction being that there is a voluntary nature to its acceptance. Need insinuates that he has no choice.

You could argue that to fulfill his desires for the firm he needs the money, but at its core his actions are still voluntary.

And sometimes people bring on equity owners not for the capital investment they might bring, but rather more for their network or influence.

It may be a semantic argument, but I just don’t see it.

By: Larry Dignan

Larry Dignan — Wed, 24 Jan 2007 01:30:41 +0000

Here are a few reasons for the KKR deal: he wants to float the idea Sun could go private; they may want to acquire something; just to send a message. More here: http://blogs.zdnet.com/BTL/?p=4345

By: Matt Marshall

Matt Marshall — Wed, 24 Jan 2007 00:59:40 +0000

Right, so he *does* need it.

By: Eugene Cook

Eugene Cook — Wed, 24 Jan 2007 00:53:55 +0000

I don’t understand what you find so confusing about his answer. Can there be no distinction made between transactions born out of “opportunity” rather then necessity.

This is the whole idea of leveraging debt for different endeavors, and is quite common practice.

Am I missing something?