Mises Wire
Author:
Pia Rennert
Gunther Schnabl
Online Publish Date:
German pharma giant Bayer’s acquisition of Monsanto is only one prominent case of leveraged buyouts (LBOs), which have been flourishing since the 1990s (see Figure). After Bayer has paid 66 billion dollars for Monsanto, the stock value of the merged enterprise has collapsed below Bayer’s pre-merger value. Bayer faces more than 10,000 US lawsuits