GOP presidential candidate Mitt Romney spends a lot of time touting his record on job creation. But when he ran Bain Capital, he also made jaw-dropping profits in leveraged buyouts of companies that later went bust, costing more than 11,000 Americans their jobs.
The 91-year old company was once the leading diversified industrial company, the product of hundreds of leveraged buyouts in the 1960s and '70s. But its breakup is yet more proof that the conglomerate model makes little sense today. Why? Activist investors have a lot to do with it.
Harbin Electric's CEO and Baring Private Equity Asia Group are proposing taking the Chinese electric motor maker private with a bid of $24 per share, or $752.2 million. It's a notably rare instance of a private equity-backed buyout.
News that beauty salon operator Regis Corp has hired investment bank Peter J. Solomon to investigate possible buyout options sent Regis stock soaring Thursday.
The recent stock market correction has been brutal for The Blackstone Group. Since mid-April, the firm's shares have gone from $15.25 to $10.58. On Thursday, though, Blackstone reported $205 million in profits for the second quarter, and shares were up around 4% late in the day.
The computer maker's namesake founder says he's contemplating it. But a leveraged buyout would be an enormous undertaking -- amounting to perhaps $39 billion. Here are some factors to consider in seeing if a buyout is feasible.
Private-equity heavyweight The Blackstone Group recently said markets could soon see the return of $10 billion-plus leveraged buyout mega-deals. Now it's preparing to fulfill that prophecy: Blackstone is in talks to do an LBO of Fidelity National Information Services.
Apollo Management's $2.4 billion deal for Cedar Fair has just collapsed because of a lack of shareholder support. Apollo got only $6.5 million as a break-up fee.