The following message was updated on 2/22/2011 6:27:11 PM.
Citi Offers Top LBO Candidates
"A credit analyst at CIti this morning offered a list of the top leveraged buyout candidates based on several criterion: market cap no more than $15 billion, generating positive cash flow, credit-default swap trading in the name, currently trading at less than 8x EV/EBITDA, a business model which would allow leveraging of such a deal and 'moderate' pro forma leverage."
Obviously controlling shareholder L will determine DO's fate. My guess is their basis is very low, so I doubt they'll want DO to go private in an LBO because they would probably have a big tax liability. L may as well continue to consolidate DO and upstream their share of the dividends. Time will tell...