(Reuters) - Music streaming company Pandora Media Inc (P.N) said on Thursday it would briefly extend the closing of private equity firm KKR & Co LP’s (KKR.N) $150 million investment to explore interest expressed by a strategic investor for a minority investment.
U.S. satellite radio company Sirius XM Holdings Inc (SIRI.O) is looking to invest in Pandora, Reuters reported earlier in the day, citing people familiar with the matter.
KKR, which agreed last month to invest $150 million in Pandora, allowed the company a 30-day-period to look for an alternative deal.
Pandora said on Thursday that KKR had agreed to the extension.
Sources had told Reuters that Sirius XM was racing to beat the Thursday deadline and clinch its own investment in Pandora.
KKR’s investment gives the PE firm preferred Pandora stock that can be converted into common stock, cash, or a combination, at a conversion price of $13.50 per share.
Pandora’s shares were marginally down at $8.42 in early trading on Thursday.
(This story corrects to say Pandora “to explore interest expressed by a strategic investor” from “to field rival offers” in headline and paragraph 1)
Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sriraj Kalluvila