While in 2005 there were only five LBO of this ilk

1 Billion euros, a bar now down on the French market for leveraged acquisitions Usually relying on the fingers of one hand each year, the "leveraged buy out" (LBO) that exceed this threshold could reach the decade before the end of 2006. While in 2005 there were only five LBO of this ilk. "The French market has never been as active as at this time on the operations of more than 1 billion euros of enterprise value", grants Eric Hamou, "managing director" in the team of mergers and acquisitions of Goldman Sachs.

Since January, eight operations beyond the value of business were closed. And half a dozen of records are likely to occur or emerge in the coming weeks: (estimated at approximately EUR 2 billion) Lafarge roofing, the carrier Keolis (more than 1 billion euros), FNAC (more than 2 billion), the rental of trucks Fraikin, but also Vivarte (more than 3 billion euros) and TDF (at least 4.5 billion). And, for certain business bankers who already continental on the assets of Suez in the environment, it is not there only possible business...

For many partners of investment funds, this trend is not stable in a market where the size of reference was less than ten years ago,... billion francs. The size of the funds of LBO ($ 160 billion raised in the world since January, according to Private Equity Intelligence on one side), and the need for refocusing after operations of external growth, argue for the continuation of the movement. "It now expected the LBO on a French listed company," summarizes a professional.

Yields down

In Europe, "the market knows an ultrafast evolution in terms of sophistication of the funding and size, said Céline Méchain, loaded, Goldman Sachs, relations with the Fund. There is more no taboo on targets and operations to leverage now earn sectors such as gas, mining or raw materials. "The last two incursions of the funds in the semiconductor (Philips Semiconductor for EUR 8.3 billion,) and $ 17.6 billion Freescale prove that cyclic and greedy trades in capital are no longer afraid. STMicro and Infineon could be LBO, notes Credit Switzerland in a recent study, while designating British ARM as the "ideal candidate".

This rapid expansion can only maintain the debates around a "bubble" in the non-coté. Rating agencies draw the whistle on the lax conditions of montages of debt. Co-founder and patron of the British firm Terra Firma, Guy Hands, is concerned with "hedge funds" in the vehicles traded some LBO funds investment. Stacking leverage, and thus the risk.

Nevertheless, most professionals consider the situation under control. "Funds were revised downward their operations internal performance goals." "They are in General of the 15 to 20 gross instead of 25 to 30 five years ago," said one of them. Only unknown: the rise of interest rates. "As long as the funds maintain their objectives of internal rate of return on these levels, they will have a damper in the inevitable increase in rates," nuance Patrick Sayer, President of the French Association of capitalists and pattern of Eurazeo.