Colt Industries is a conglomerate that considering a leveraged recapitalization. Transaction involves a large one-time dividend to shareholders, which will be funded by more than $ 1 billion in new debt. Unlike leveraged buyout, however, public shareholders retain a stake in the company. Employee shareholders of the company savings plan will not receive dividends, but instead would see their ownership stake in the company has increased substantially. "Hide
by Jeremy C. Stein Source: Harvard Business School 13 pages. Publication Date: August 3, 1988. Prod. #: 289012-PDF-ENG
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