[KKR UPDATE1] (Redmond, Washington)-1 August 2001--
ACCEL AND KKR FORM NEW TELECOM VENTURE; NAME ARUN SARIN AS CHIEF EXECUTIVE OFFICER
Veteran Executive To Lead Initiative Focused On Telecommunications Industry Buyouts as well as Strategic Minority Investments
MENLO PARK, CA, July 18, 2001 - Accel Partners and Kohlberg Kravis Roberts & Co. (KKR) announced today they have formed an additional venture to focus on telecommunications industry investments and have named Arun Sarin, former president of AirTouch and chief executive officer of InfoSpace, as chief executive officer.
The new venture, called Accel-KKR Telecom, will invest in and manage assets in the telecommunications business on a global basis using the joint human and financial resources of the two firms. Funding for specific investments will come from KKR's existing Funds, Accel's latest Funds, and from the Fund managed by the existing Accel-KKR partnership. Accel and KKR currently work together in applying online technology to major corporations through a venture established in 2000.
The new venture will focus both on companies that have exciting growth prospects as well as on large enterprises that are looking to recapitalize their balance sheets as they fine-tune their business models in response to market challenges. Given Accel and KKR's expertise in a range of private equity finance, the new venture is interested in traditional buyouts as well as strategic minority investing where it has an opportunity for substantial governance participation.
Mr. Sarin, 46, is a 17-year veteran of the telecom industry, and has managed both large and small businesses in the wireless, wireline, Internet, and international arenas. He will also join the Board of the telecom venture, along with Henry R. Kravis and George R. Roberts, who are both founding partners of KKR; James W. Breyer, managing partner of Accel; and Paul Hazen, chairman of the existing Accel-KKR partnership, deputy chairman of Vodafone, and retired chairman and chief executive officer of Wells Fargo Bank.
"We are delighted to have someone of Arun Sarin's caliber join forces with KKR and Accel as we bring together significant financial resources, technology expertise, and management know-how to address a dynamic market opportunity," said Mr. Kravis. "While KKR has invested selectively and prudently in the telecommunications industry since 1995, and Accel since 1983, we believe the opportunities today are very attractive as the industry remakes itself in fundamental ways."
Jim Breyer of Accel* said, "Telecommunications will be one of the single most important and dynamic industries of the 21st century. The gap between the size of the opportunity and the difficulties many industry players are currently experiencing is why we believe telecom represents such a significant opportunity."
"Given the scope of this opportunity, we wanted to form a venture with the leadership to navigate a rapidly changing landscape and the management experience to help sort through the operational and structural challenges many telecom companies face today," said KKR's Mr. Roberts. "When Paul Hazen introduced Henry, Jim Breyer, and myself to Arun, we knew that with his help we could create a strong vehicle to capitalize on the valuation and restructuring opportunities the telecom industry presents to private equity investors."
"This is a terrific time to think about telecommunications products and services and look for ways to put new ideas to work, " said Mr. Sarin. "I had been looking for an opportunity that would combine depth of financial resources and smart, seasoned investors with a long-term commitment to the industry. I am happy to be working with Accel-KKR Telecom and the teams of professionals that stand behind both organizations as we create an exciting new venture designed to build value for Accel and KKR investors...
For KKR
Ruth Pachman/Molly Morse
Kekst and Company
(212) 521-4800
ruth-pachman@kekst.com
molly-morse@kekst.com
For Accel Partners
Jim Breyer
Managing Partner
(650) 614-4800
jbreyer@accel.com..."
Source: KKR.com 18 July 2001 kkr.com Accel-KKR accelkkr.com
James Breyer/Accel currently is HEARs largest shareholder as noted previously on this thread. James Breyer was also a Director of HEAR from 1996 to 2000 also as previously noted. Said KKR announcement occured only 12 days before HEARs inexplicable and bizarre announcement regarding the closing of its business and cancellation of its Annual Shareholders Meeting despite consistent representations to the contrary and acceptance of said Shareholder Proxies pursuant to said 30 July 2001 Annual Shareholders Meeting. Accordingly HEAR shareholders allege proxy fraud, stock fraud, SEC Rule 10b-5 violations, etc. as proximate cause for unspecified punitive, criminal, and civil damages, also as previously cited.
/s/esecurities corporation
Beneficial shareholders (NASDAQ:HEAR) |
