As journalists who covered mergers found themselves increasingly the object of attention,they began to up their demands. They didn't want to talk with some "flak," they wanted to go straight to the source. And gradually, that is what they did. By the mid- to late-1980s, any merger reporter worth his or her salt had the number of the home phone, the country home, and the carphone of every top dealmaker in the country. And they would think nothing of dialing them whenever they had to. The dealmakers, in turn, were only too happy to ingratiate themselves with the mainstream journalists. Press coverage was becoming increasingly important and could even influence the outcome of a deal, by altering public opinion or increasing the pressure n boards of directors. Part of a dealmaker's job was to cultivate a special relationship with one or two key journalists who could be counted on to get his point of view, his "spin"on a deal, into the public's eye.

In this game of mutual seduction, Kravis Kohlberg Roberts proved to be particularly effective. Interviews were granted sparsely, which only helped to further KKR's allure. . . . Even at the most prestigious publications, KKR would generally deal with only one reporter. That left the rest feeling intimidated and somehow deficient, yet at the same time, admiring and envious of the person whose calls were returned. In my own case, I had the frustrating experience of being turned down several times while I was at Business Week, on the ground that they just didn't do interviews, even though I knew that they did. . . .

After I joined the Times and gradually gained acceptance, I was invited several times to have lunch with [Henry Kravis] in his private dining room for an off-the-record chat. It felt akin to being summoned for an audience with the pope, and other reporters would nod approvingly when they heard where you were going for lunch. Henry would occasionally return reporters' phone calls, just often enough to make it worth trying, but just inconsistently enough that you still felt pleased when you actually succeeded in reaching him. Gradually, many reporters at the Times and elsewhere came to think of Henry as a genuinely nice guy. . . And the more that reporters got to know him as a person, the harder it was not to be sympathetic, perhaps even a little protective. KKR was one of the most active dealmakers in the world. Even if KKR wasn't directly involved in a deal, Henry might still be knowledgeable because the firm analyzed many companies without ever making a bid. Henry's charm and importance made him a source not to be trifled with. The coverage of KKR, in turn, became increasingly deferential.

FROM THE MONEY MACHINE: HOW KKR MANUFACTURED POWER & PROFITS BY SARAH BARTLETT. WARNER BOOKS. 345 PP. $ 24.95

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