Dividend Recaps: How Private Equity Is Sucking the Life Out of Good Companies
Filed under: Investing, Banking
“Neither a borrower nor a lender be; For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.”
— Shakespeare, Hamlet, Act 1, Scene 3
Shakespeare was right, of course. And it’s the “borrowing” that’s particularly pernicious — especially when it comes to the kind of borrowing used by high-powered investors to take companies private. By buying public companies, loading them up with debt, and spinning them back out to unsuspecting investors in the form of…
Dividend Recaps: How Private Equity Is Sucking the Life Out of Good Companies originally appeared on DailyFinance.com on 2012-12-15T06:00:00Z.
Permalink | Email this | Comments
http://www.dailyfinance.com/2012/12/15/dividend-recaps-how-private-equity-is-sucking-the-life-out-of-g/