UPDATE 4-KKR to merge with Euronext fund, NYSE still eyed

* KKR to merge into Amsterdam-listed fund

* Fund to own 30 pct of new company, KKR remainder

* KKR still keen to list in New York -- source

* NYSE IPO could be as early as spring 2010 - source

* Withdraws previously filed IPO plans - filing (Adds details from source about potential IPO timing in paragraph 7, adds bullet point)

By Megan Davies

NEW YORK, June 24 (Reuters) - Private equity firm Kohlberg Kravis Roberts & Co announced plans on Wednesday to merge into its Amsterdam-listed fund, a roundabout way of gaining a European listing, while holding the door open for a possible move to the New York Stock Exchange.

KKR, one of the world's most powerful private equity firms, has been trying for two years to follow rival Blackstone Group LP (BX.N) and become a publicly traded company.

Under the deal proposed on Wednesday to merge with KKR Private Equity Investors LP (KKR.AS) (KPE), KKR plans to keep the Amsterdam fund listing -- a divergence from previous plans to delist it. KPE would own 30 percent of the combined business, an increase from the original 21 percent proposed to KPE shareholders.

"I view this as an in-between step," said Michael Kim, an analyst at Sandler O'Neill & Partners.

Kim thought the ultimate goal for KKR remains a NYSE listing.

KKR, which has investments in numerous household names such as Toys R Us Inc [TOY.UL], mattress maker Sealy Corp (ZZ.N) and asset manager Legg Mason Inc (LM.N), remains very eager to pursue a listing in New York, a source close to the company said on Wednesday. The source said the new proposal gives it more freedom on the timing.

At the earliest, an IPO in New York could come in spring 2010, that source said.

KPE has no ability to force KKR into a listing for a year after the close of the deal. After that, if KKR has not sought a listing within 12 months of the deal's closing, KPE has the right to require the combined company to list in New York.

New York-based KKR launched plans to list on the NYSE in July 2007, a month after Blackstone went public and just before the markets started to tumble.

The firm, co-founded by "buyout king" Henry Kravis, had planned a traditional initial public offering. But it later proposed a complex method to go public, by combining with KPE, delisting the fund from Amsterdam and listing in New York.