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De-equitization covers anything that cuts the amount of circulating equity — including leveraged buyouts, debt-financed acquisitions, buybacks and special dividends.
Mr. Mack's successor at First Boston, Brady W. Dougan, said in an interview that several areas presented opportunities, including leveraged finance, private equity and commodities.
Each firm is expected to invest the funds in several strategies, including leveraged buyouts, real estate and debt investments, consulting closely with the retirement system's team of managers.
The bankers also met with investors, including leveraged buyout firms and two industrial companies, which might inject up to $2 billion into Enron under arrangements that would protect them from a further collapse in the company's stock, the executives said.
While Mr. O'Neal conceded in the release that Merrill could have done better on its mortgage-related risk management, he said the firm had done well managing risk in other businesses including leveraged finance.
In its filing, Bank of America, which is based in Charlotte, N.C., said that during the third quarter "extreme dislocations emerged in the financial markets, including leveraged finance, subprime mortgage, and the commercial paper markets" and that it expected the disruption to threaten future results.
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Galileo announced in November that it had hired J. P. Morgan Chase & Company to help it explore strategic options, including a leveraged buyout or sale.
Indeed, Mr. Fraidin has worked on some of the largest deals in history, including the leveraged buyout of RJR Nabisco in 1998, and more recently Northrop Grumman's hostile takeover of Newport News Shipbuilding Inc. and Gulfstream Aerospace Corporation's merger with General Dynamics.
C1 AT&T Planning to Restructure With its stock price down, AT&T will probably decide on a significant restructuring by next month, possibly including a leveraged buyout led by John C. Malone of the company's consumer long-distance phone business, people close to AT&T said.
My other critical leading indicator is the beginning of a contraction in the risk premium for below investment grade securities of all kinds, including corporate leveraged buyout (LBO) paper.
The report was roundly criticized by those who believe the investing public needs better safeguards from the trading activities of hedge funds, including big leveraged bets that could roil markets if they unraveled.
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