(FINANCE) leveraged buy-out; when a takeover artist like Kohlberg Kravis Roberts & Co (KKR) arranges to borrow huge amounts of money at high interest, buy a controlling interest in a corporation, and then replace the management so its more profitable. The new profits then pay off the cost of buying the company.
Usually a takeover artist requires a vehicle corporation to carry out an LBO. For example, T. Boone Pickens used Mesa Petroleum against Union Oil in the 1980's.
Prices shown in USD.
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