Article: Buyouts could be next bomb to hit markets

LEVERAGED buyouts (LBOs) by private-equity groups are a potential trigger for further credit market jitters, according to a top ratings agency.

About half of a group of 36 European companies snapped up by private-equity firms through deals bankrolled by big borrowings are now lagging behind their earnings and debt targets, a survey by Standard & Poor's said yesterday.

Market professionals said that raised the spectre of LBOs being the next catalyst for financial market nerves following on ...

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