Leveraged Buyouts are Back !!

Usually happens near the peak of a cycle.

Life Tech Exploring Potential Sale, Shares Soar

Life Technologies Corp is exploring a potential sale and has retained banks to advise on the process, the biotechnology company said on Friday, sending its shares more than 10 percent higher to an all-time record.

Life Technologies, whose market value surged to roughly $10.5 billion, said its board has hired Deutsche Bank Securities and Moelis & Company to assist in its “annual strategic review.”

Dell Leveraged Buyout May Hinge on Cash Hoard Outside U.S.

Michael Dells plan to take his computer company Dell Inc. (DELL) private may hinge in part on whether hes able to exploit one of the companys most valuable assets: as much as $14.2 billion of cash and bonds outside the U.S.

Like many of the worlds largest technology companies, Dell has legally avoided billions of dollars in income taxes by attributing profits to overseas subsidiaries in tax havens. Bringing the cash back to the U.S. to finance the buyout would risk subjecting the money to the 35 percent corporate income tax rate, with a credit for any foreign income tax theyve already paid.

Who holds the bag after leveraged buyouts? Answer - Pension funds.