Kohlberg Kravis Roberts' banks failed to sell 5 billion pounds ($10 billion) of loans to fund the buyout of Alliance Boots Plc, two people with direct knowledge of the deal said today. Chrysler scrapped a planned sale of $12 billion in debt for its automotive business, according to investors who were briefed on the decision.
Nick Jansa, a London-based director in capital markets at Deutsche Bank AG, the lead bank for KKR, didn't return calls seeking comment. E. Michael Schuler, a spokesman for Capital Management LP, the private equity company buying Chrysler, didn't immediately return a telephone call seeking comment on the financing.
Shares of DaimlerChrysler AG, the world's second-largest maker of luxury cars, rose $2.76 to $92.21. The company boosted the profit-margin forecast for Mercedes after second-quarter earnings almost doubled on a new C-Class sedan.