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Friday the 13th`s 190-point market drop in reaction to United Airlines leveraged buyout failure could be prevented in the future.
I think it`s time that Congress passes legislation to provide that a fixed percentage (I would like to see 50 percent) of the buyout price be in the form of cash and securities.
The latest proposed takeover of American Airlines was another example of a leveraged arrangement that couldn`t possibly be paid from earnings if only one-seventh cash payments were made.
This is true in the majority of the buyouts of the past few years, so they must be made financially feasible by legislation.
