Korea M&A Corporation

London: The leveraged buyouts that have fuelled record merger activity face a new test as interest rates rise and stock markets wobble, early signs that the debt behind the deals could become costlier and difficult to raise. Low interest rates around the world have led to an explosion in buyouts by private equity firms such as Kohlberg Kravis Roberts and Blackstone Group in recent years. They ha..

An all-Korean transaction using the leveraged buyout method was declared illegal, in some instances, by the Supreme Court on Nov. 9. Although such transactions are fairly common around the globe, in Korea they are rare. The recent ruling did not outright ban LBOs, and needs to be understood in the broader context of LBO transactions. LBOs are takeovers of another company with funds borrowed usin..