Friday, Apr 13, 2007
Former Chief of CountryWide: "It will all end in tears"
Guardian Business: Countrywide boss has a dig at private equity
The outgoing chairman of Countrywide took a surprise parting shot at private equity after shareholders at his estate agency group approved a £1.05bn bid from US buyout firm Apollo Management.
He added: "If there's a market downturn in the western economies, a lot of these highly leveraged private equity buyers are going to find themselves in difficulty. I would hate to see it happen to Countrywide."
He said that in 1973, when the oil crisis precipitated a global economic recession, all the companies that went bust were over-borrowed and incorrectly financed. "It's all fine at the moment, but it will end in tears," he said.
Posted by lvmreader @ 06:49 PM (182 views) Add Comment
1 Comment
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1. dobber said...
Why have Apollo (the eagle has landed) made such a bad call?
Reminds me of insurance companies buying estate agents in the late 80's ooopppsss!!!!!!!