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Private equity firm Kohlberg Kravis Roberts & Co. withdrew its two-year-old plans for an initial public offering on Wednesday.
In a regulatory filing, KKR said it does not expect the IPO, once valued at up to $1.25 billion, will be completed.
KKR & Co., a prolific buyout shop known for huge deals like the $48.4 billion purchase of TXU Corp. in 2007 and the $33 billion purchase of HCA Inc. in 2006, originally registered to sell stock on July 3, 2007, shortly after rival The Blackstone Group LP's $4.1 billion IPO.
At the time, the market was experiencing one of the strongest IPO years on record, even as the subprime mortgage and credit market crises were unfolding.
Last year, KKR amended its original plans, and said it would sell its shares on the New York Stock Exchange through the takeover of its Amsterdam-listed affiliate KKR Private Equity Investors LP. But the deal was delayed because of a Securities and Exchange Commission review, and widening losses for the European investment fund.
Separately Wednesday, KKR revised its 11-month-old proposal to buy all of KKR Private Equity Investors. The new plan calls for KKR Private Equity to own 30 percent of the combined company, up from 21 percent in the prior deal.
The revised plan also would have KKR maintain the European listing, and gives KKR Private Equity the right to press for a NYSE listing after a year, if no U.S. IPO has yet taken place.
KKR said investors representing about 44 percent of KKR Private Equity's outstanding units support the new deal. Among the supporters, KKR said, are Black River Asset Management, Lexington Partners, Putnam Investments, RS Investments and Franklin Templeton Investments.
The deal still needs approval from the European firm's independent directors.
KKR and KKR Private Equity agreed to extend the deadline for the deal to Oct. 31, from Aug. 31.
