leveraged buyout $100bn pipedream

It wasn’t long ago that a $30bn-plus leveraged buyout seemed a stretch. But last week saw Blackstone’s record $39bn record LBO of Equity Office Properties and a possible $20bn bid for J Sainsbury, in what would be Europe’s record LBO. No wonder Wall Street and City bankers are giddy with the idea of a $100bn LBO. But this looks like a pipedream. When bankers salivate over the prospect, of course, they can tick off how they’d raise such a vast sum. About 70% - or $70bn - would be debt. And given...