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Kinger Morgan buyout????????

The big thing with LBOs is that they won't be subjected to the varagies of the markets. THey are not beholden to stockholders and have greatly diminished reporting requirements. It also allows them a lot more freedom in swinging heafty hammers when it comes to changing the structure and environment of the company.

Ford is said to be considering something similar.

One good example was Seagate, which underwent a BO from an investment group in the late 90's. They swung huge axes, created bottoms-up improvements and came out of the .bomb environment relatively untouched and they came out fighting stronger than any other HDD company.
 
Originally posted by: JEDIYoda
Originally posted by: redgtxdi
[L=http://news.moneycentral.msn.com/provid....asp?

Does this have any earth shattering consquences?[/quote]



Well, here's my concern & maybe you can decide for yourself whether it's anything valid or not.

First thing I do when I see things like this happen is question.......WHY?? Why would they want to buy out a company that's otherwise doing OK??

Before they even THINK about making money on the project, they've got to overcome $7BILLION worth of debt first. That's a pretty tall order considering the whole sale of the company is $15B.

Then I think about what they WON'T have to report publicly......(at least not in terms of stock holders). 43,000 miles of pipeline is A LOT......(imho)......and if somebody private has SOLE control over it.........I dunno.........I just get the heebee-geebeez thinkin' about that much control in the hands of a few privateers.

Now, I also think that Seagate has come out of the heap wonderfully and produce a great product, for a great price, with a great warranty and (hopefully) maybe they're still makin' a buck at the game......but that game is different. Hard drives are a competitive market. Pipelines are like phone lines..........EEEEK!! :Q

My gut tells me that *IF* these guys can see an easy way to come out of $7Billion in debt *and* create a money-making machine out of this whole deal, then it *MIGHT* just be coming out of our pockets worse than if it were a publicly traded company with more public accountability!! :Q

????????
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