KKR Seen Breaking Up First Data

NEW YORK – Wall Street analysts were predicting yesterday that private equity giant Kohlberg Kravis Roberts & Co. will quickly break up First Data Corp. and sell off its parts soon after the $29 billion takeover of the payments processor is completed. One report predicted that KKR would sell First Data’s Institutional Services unit, even listing the potential buyers, General Electric or Citigroup; then break up First data’s Chase/Paymentech joint venture. First Data’s STAR electronic funds transfer network is another candidate for sale, said several reports. Analysts said First Data, which itself spun off its Western Union unit just five months ago, may be worth more in parts, than as a whole. After completion of the KKR deal, Henry ‘Ric’ Duques, who came out of retirement two years ago to head First Data, said he will retire, again. KKR has agreed to acquire First Data for $34 a share, a 26% premium over its Friday trading price , in one of the largest going-private deal ever. The First Data acquisition is one of $100 billion worth of deals pending for the buyout giant.