Monday, April 9, 2007
The Wall St. Journal asks why the rich guys want to buy the businesses the rest of the market shuns and looks at the recent bids of Kerkorian (for Chrysler), Zell (for the Tribune) and Icahn (for Lear Corp. and WCI Communities). Among the reasons it gives: the companies are cheap, the buyers are counting on taking on more debt and looking toward the longterm, when they'll be able to take them public again. Or maybe it's because they have more money than they know what to do with. See WSJ, Why Flush Financiers Court Unloved Businesses.