A Legal Minefield Awaits MBOs

June 2006
Investment Dealers' Digest;6/19/2006, Vol. 72 Issue 24, p28
Trade Publication
The article discusses the danger for private equity firms of financing management buyouts. In management buyouts, a company's managers, who typically own a part of the equity, propose to take the company private with the financial backing of private equity. This puts them in opposition to shareholders since management wants to pay as little as possible for their shares. A lawsuit was filed by Kinder Morgan Inc. shareholders against the company on grounds that the $100 offer is unfair.


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