Fierman, "The Selling of America," Fortune, 23 May 1986, 54 57, 62 64.
12J. M. Tannon, and C. L. Stewart, "Did Indiana Decision Buoy Takeover Regulation?" Mergers and Acquisitions, September October 1987, 43 47; C. Yang, and J. Weber, "Is Delaware About to Harpoon the Sharks?" Business Week, 25 January 1988, 34.
4support for additional corporate takeover regulation, particu larly where an LBO structure is involved.13
LBOS AND THE AMERICAN ECONOMY AND SOCIETY
A leveraged buyout is one in which the cost of the pur chase is largely borne by the firm being acquired. Thus, debt instruments with claims on the acquired firm are issued to fund the takeover. In most instances, these debt instruments are so called junk bonds.
Junk bond is the term used to describe an (1) original issue, (2) high yield, (3) low grade, (4) corporate bond. In the context of high and low grade, this definition is gener ally applied so tha
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