Staples Surges On Report Of Possible Bain Capital Take Over

[bucolic_frolic]

14. It's the Private Equity Merry Go Round

Lots of firms are bought out, taken private, taken public, taken private again. Hotel chains, stores ... here's one example:

"Here's a brief history of how Burger King has been flipped on the private-equity
griddle over the past decade:

Goldman Sachs (GS -0.47%, news) and the private equity firms TGP and Bain
Capital (famous for being co-founded by GOP presidential contender Mitt Romney)
took control of Burger King in 2002. Four years later, they took it public,
extracting a $448 million dividend in the process. Next, Burger King was taken
private by 3G Capital in 2010. Now it's public again, though 3G Capital retains
a 71% stake.

The upshot: In total, private equity has sucked $1 billion out of Burger King
along the way, estimates Howard Penney, the managing director at Hedgeye, a
stock research firm. "It's been a party for Wall Street," says Davidowitz. "The
private equity guys have made a fortune." But like all parties, this one has
come at a cost. "They've been jerking the company around, making a fortune. The
problem is the company is a cadaver." "

http://money.msn.com/investing/why-burger-king-is-no-big-mac-brush.aspx?page=0