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Unlike in the United States and Europe, where full takeovers are more common, buyout firms in Asia have faced challenges in deploying traditional business model because of the prevalence of tightly held family companies whose owners are often reluctant to part with controlling stakes.
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In a response included with the comptroller's findings, Jeffrey B. Rosen, the authority's director of real estate, said that while "discussions with a potential proposer" were not common, "no buyout of Metrazur's lease would have been possible without such discussions and agreements".
These arrangements are common in buyouts where the owners don't anticipate a ready source of cash, which could happen if one owner gets divorced or wants to quit the business, Professor Donaldson said.
But tax experts in India say that the Vodafone case has little in common with Kraft's buyout of Cadbury.
Known as "staple financing" in the industry, the practice was increasingly common in the leveraged buyout boom.
That has been a common refrain among many buyout executives, who argue that their vast stores of uninvested capital and a potential rise in undervalued companies could only help propel deal making.
This is a common problem in many buyouts.
Could this be the year when leveraged buyouts become common place in China?
(Buyouts were common after former airliner TWA moved its hub to St . Louisin 1982 and air traffic swelled, but when American Airlines swallowed up TWA in 2001, the number of flights declined precipitously).
OTTAWA — Magna International said on Friday that three-quarters of its common shareholders had approved a buyout plan to end the voting control now held by the company's founder and chairman, Frank Stronach.
Media giant Viacom and broadcast giant CBS could increase the value of their respective common stock through a leveraged buyout or other forms of financial engineering, according to a Tuesday report by Morgan Stanley.
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