Now DOW? HOW?

[runningman]

http://www.marketwatch.com/news/sto...4FFF-8C12-DD689BC9DC26}&siteid=yhoo&dist=yhoo

How the hell is the market absorbing all the Junk (I mean High Yield) bonds this and the TXU deal will generate? Who is buying these things at such low spreads to high quality corporates? Did we accidentally set the WAYBAC machine to th 80's ???

 

[ByLoSellHi]

Here's a better question:

To do this deal, KKR agreed to NOT build an additional 8 coal power plants (out of 11) that were scheduled to be built.

How screwed up is that?

They pay top dollar, and then agree to cut a major expansion that would have generated buku $$$ to pacify environmental concerns.

Maybe they are banking on a nuclear plant substitute.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a2qZBY4Md9SE&refer=home

 

[S2007S]

They said its not definite yet but if it does go through it will be the largest in history.

 

[S2007S]

These companies are starting to over leverage themselves, right now its easy to borrow billions at at low rates, but if risk premiums start to build expect a total collapse in this already overheated sector.

TXU on Friday and only 2 days later DOW looking to be taken private for $54 billion. It will not be pretty when all this comes to an end.

 

[S2007S]

J Sainsbury may get $21 billion bid this week

PrintE-mailDisable live quotesRSSDigg itDel.icio.usBy Steve Goldstein, MarketWatch
Last Update: 9:27 AM ET Feb 25, 2007


LONDON (MarketWatch) -- British supermarket chain J Sainsbury may receive a $21 billion (11-billion-pound) takeover bid this week, according to a published report.
Sainsbury (UK:SBRY: news, chart, profile) , the third-largest supermarket operator in Britain, may get an offer from buyout firms Kohlberg Kravis & Roberts, Blackstone Group, CVC and Texas Pacific in a few days, The Sunday Times of London reported, citing unnamed sources.

 

[chanster]

no question this is like a gold rush at cheap rates. this is signallying a mania top near. all these buyouts are using bonds and borrowing huge amounts of money. these companies are going to recycle all this and bring them back with new ipo's. its a giant money ponzi scam.

 

[otcstockfund]

yep they did it with hertz

 

[S2007S]

Burger King too.

 

[ByLoSellHi]

Leveraged Buyouts are the biggest scam for investors, and biggest bonanza for management ever.

Pure risk-free gluttonous profits for the managers and investment banks, shifting every piece of risk onto the investors.