Friday, 13 July 2007

European Stocks' Four-Year Rally Faces Threat From LBO Risk, Goldman Says

(Bloomberg) -- A four-year rally in European stocks
may be threatened amid expectations that financing costs for
leveraged buyouts will increase, according to Goldman, Sachs &
Co. strategists.

The collapse of a debt-funded acquisition would rattle
investors' confidence in takeovers, which have been ``a great
driver'' for stock markets, Georgina Taylor, a London-based
European portfolio strategist at Goldman, said in an interview. A
bailout of a failed fund or bank would also pose risks, she said.


Read more at Bloomberg Stocks News

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