Private Equity has kind of worked like flipping houses in an up market....many players with no intention of remining as owners for any significant length of time...i.e. many speculators that should not be in the market and who are just looking for a quick gain. The "adverse development" is that, in future, it looks less and less likely if there will be buyers left to flip stuff to (at ever more inlfated and ridiculous prices....)
Harman/Levinson/Proceed/Lexicon/Revel/ Deal Busted
Two Private Equity Firms Back Out of $8 Billion Buyout of Audio Equipment Maker Harman International.
http://biz.yahoo.com/ap/070921/harman_buyout.html?.v=20
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http://biz.yahoo.com/ap/070921/harman_buyout.html?.v=20
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