Ford Motor company has a miserable history, but at the time they were pretty desperate. I wonder why there wasn't more of a bidding war that would have set the price near to what the company was worth.
On Sat, Mar 24, 2007 at 10:05:41AM -0000, Daniel Davies wrote: > David is surely right on this - the good that they did was that they put up > the cash when Ford needed it; we can all sit around saying that it's easy to > load a company up with debt and flip it for a quick turn, but these were the > people who were prepared to actually place the cash on the barrelhead. They > even took a genuine and large risk, because if there had been a sudden > market crash or something they would have looked like the most unbelievable > idiots. > -----Original Message----- > > But far too often financiers seek to increase their wealth in plainly > unproductive ways. For instance what good did the private equity firm that > flipped Hertz recently do? (They loaded the company with debt paid > themselves $1B and IPOed it.) > > ----------- > > -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu michaelperelman.wordpress.com
