First Data shareholders have approved the sale of the company to buyout firm Kohlberg Kravis Roberts, although investors remain wary the deal will get done.

The company said Tuesday that more than 98 percent of shareholders who voted gave thumbs up to the transaction, in which they would receive $34 in cash per share. In a statement, Chairman and CEO Ric Duques said that First Data is "well on (its) way to closing this transaction, as expected, in the third quarter."

The markets are still showing some skepticism for the $25 billion buyout.

First Data stock closed Tuesday at $31.79. That's just 93.5 percent of the offer price, the biggest gap since First Data announced its sale April 2.

As investors see more risk as to whether the deal will get done at the announced terms, the gap between the offer price and the market price gets bigger.

Last week's market decline has underlined recent fears that the buyout boom may be ending.

Investors are demanding more reward for buying junk bonds, which will finance billions of dollars of deals, including the First Data buyout. That means higher interest rates, which leads to less cash flow for the newly private companies.

"Investors are more concerned about FDC and other private equity transactions than they were a few weeks ago," said Jerry Paul of Quixote Capital Management. "While there are financing commitments in place for many of these deals, including First Data, the market continues to be concerned as to whether or not bankers will stand up to these commitments or find a way out since they can't syndicate the loans."

First Data spokesman Colin Wheeler declined to comment.

First Data

FDC: NYSE

$31.79

-34 cents

milstead@RockyMountainNews.com or 303-954-2648.