The purchase of a controlling share in a company by its management, using outside capital.
- A management buyout or leveraged buyout is a transaction where some individuals borrow large amounts of cash and buy the outstanding stock of all the other shareholders.
- This newspaper understands that the idea of a leveraged buyout was discussed by management and some shareholders in the past, but was not pursued.
- The weakness in the stock was blamed on investor uneasiness about a looming leveraged buyout by a management-led group, the column said.
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