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NYT Report: DOJ Looking Into Possible Collusion by Private Equity Firms

Authored by Mark Hefflinger on October 10, 2006 - 4:32pm.
Washington - The New York Times DealBook publication reported on Tuesday that the U.S. Justice Department has sent letters to major private equity firms in a possible inquiry into anticompetitive activity. The article said that the "the delicate dance among buyout firms, who compete in some deals and work side-by-side on others, is drawing some unwanted attention." Amid a surge in private equity in recent years, the funds have become an increasingly important driver of merger and acquisition activity by public companies. The article added, "In private, some buyout executives concede that firms' cooperation, often in the form of 'club deals,' can have the effect of lowering prices for the companies they are acquiring."
http://dealbook.blogs.nytimes.com/?p=8170
tags: Deals | Law | Investing | DOJ | Collusion | Private Equity |



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