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madrose1

11/25/06 9:47 PM

#1111 RE: madrose1 #1110

What company is going to be the next Leveraged Buyout target?-Barron's
While it has been hard to find LBO candidates lately, Morgan Stanley strategist Henry McVey believes a $50B LBO is possible. McVey says that some of the large companies that could possibly be takev private are Gap (GPS), Micron Technology (MU), Bed Bath and Beyond (BBY), Nike (NKE), Liz Clairborne (LIZ), EMC (EMC) and Costco Wholesale (COST). Barron's says that it is a "good bet the LBO boom will continue" and points out other potential LBO targets in the Consumer, Energy, Home-Building and Tech Sectors. In the Consumer sector, Avon Products (AVP) has been the subject of buyout rumors and Christopher Ferrara, an analyst at Merrill Lynch has Kimberly-Clark (KMB) and Estee Lauder (EL) at the top of his list. Potential targets in the Energy sector include Apache (APA), Valero Energy (VLO). Hess (HES) and Transocean (RIG). While nearly all of the home builders have been mentioned as buyout candidates, Barron's lists KB Home (KBH), DR Horton (DHI), Lennar (LEN), Toll Brothers (TOL), MDC (MDC) and Hovanian Enterprises (HOV) as possible targets. Lastly in the Technology sector, CreditSights sees Linear Technology (LLTC), Maxim Integrated (MXIM), Analog Devices (ADI), Altera (ALTR), and Xilinex (XLNX) as possible targets. :