A situation where a company repurchases large numbers of its own stock because it has too much cash on hand or does not have the cash but is willing to get into debt to prevent another company from taking them over. The initial result of the buyback will be an increase in the price of the stock which may be short lived.
Related information about leveraged buyback:
- Leveraged Buyback Definition | Investopedia
A significant re-purchase of a company's own shares, financed through debt. Buybacks are done for a variety of reasons: 1) To raise the stock's price; 2) to avoid ...
- What is leveraged buyback? definition and meaning
Definition of leveraged buyback: A situation where a company repurchases large numbers of its own stock because it has too much cash on hand or does not ...
- Leveraged buyback: How to deal with the Greek debt overhang | vox
Leveraged buyback: A proposal for the Greek debt overhang. Angelo Baglioni, 21 May 2011. Should Greece's creditors tackle its mountain of debt by writing ...
- Leveraged Buyback » Payout Yield
Parker Hannifin Corporation (NYSE: PH) announced a $500 million accelerated share repurchase. In addition, the company increased its quarterly cash ...
- Expedia: How About A Leveraged Buyback? - Seeking Alpha
Jun 19, 2007 ... On Friday, Expedia (EXPE) shares jumped on speculation that Executive Chairman Barry Diller was considering taking the company private at ...
- Why The Flurry Of Buybacks? - Businessweek
Nov 28, 2004 ... He says that long before quarterly results weakened, the company had been mulling a leveraged buyback as a "prudent" use of its financial ...
- The D & O Diary: Leveraged Buybacks
Jun 20, 2007 ... As the Wall Street Journal note (here, subscription required) in discussing the Expedia leveraged buyback, "reducing the outstanding stock can ...
- An Examination of the Current Value Impact of a Leveraged ...
This research is aimed at studying the impact of a substantial share repurchase financed through debt (known as a Leveraged Buyback) on the value of the ...