Leveraged buyout rebounds in a post-crash world

Chicago Sun-Times | February 21, 1988| | Copyright

The leveraged buyout, a popular method of financing corporate acquisitions and spinoffs, has gotten a second wind in recent weeks after a brief post-crash hiatus.

Confidence in the economy is emerging as are some of these leveraged deals. In an LBO, investors buy a company with lots of borrowed money, letting the company's assets serve as collateral.

In recent weeks alone, dozens of LBOs have surfaced.

The leveraged buyout firm of Kohlberg Kravis Roberts & Co. is believed to be going after Federated Department Stores in a multibillion-dollar deal, while management groups at J.P. ...

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