Text size [+][-] Wednesday November 19 2008GLOBAL EDITION
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In some leveraged buyouts – for example those of Harrah’s and Realogy – companies left themselves room to stretch out their balance sheets by slotting in new senior loans later. This boom-time device, known as an accordion, is now being used to squeeze junior lenders.
Italy has headed into recession but an economy that didn’t bubble and has long fizzled has less an air of crisis than the UK, Spain or Ireland. Italy still has a lower unemployment rate than Spain or France. It will take much more trouble to threaten Italy’s euro survival.
The CEOs of the Detroit Three tried to sway US lawmakers with forecasts of doom but gave little detail on how taxpayer money would help. Macroeconomist Peter Morici was more persuasive, arguing that a bankruptcy-like restructuring looks the better bet.
Tech demand may have seized up, but HP's quarterly results show the firm chugging along smoothly. Shareholders may want to thank CEO Mark Hurd’s stringent cost-cutting programs. Weak competitors like Dell and Sun don’t hurt, either. But the party may not last much longer.
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Even when you don't agree, it still makes you think. Charles Sherwood, partner and member of the board, Permira
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