Fordham Urban Law Journal Volume 14 | Number 3 Article 5 1986 Leveraged Buyout, Management Buyout, and Going Private Corporate Control Transactions: Insider Trading or Efficient Market Economics? Patrick S. Dunleavy Follow this and additional works at: https://ir.lawnet.fordham.edu/ulj Part of the Business Organizations Law Commons Recommended Citation Patrick S. Dunleavy, Leveraged Buyout, Management Buyout, and Going Private Corporate Control Transactions: Insider Trading or Efficient Market Economics?, 14 Fordham Urb. L.J. 685 (1986). Available at: https://ir.lawnet.fordham.edu/ulj/vol14/iss3/5 This Article is brought to you for free and open access by FLASH: The orF dham Law Archive of Scholarship and History. It has been accepted for inclusion in Fordham Urban Law Journal by an authorized editor of FLASH: The orF dham Law Archive of Scholarship and History. For more information, please contact
[email protected]. LEVERAGED BUYOUT, MANAGEMENT BUYOUT, AND GOING PRIVATE CORPORATE CONTROL TRANSACTIONS: INSIDER TRADING OR EFFICIENT MARKET ECONOMICS? I. Introduction According to one commentator, a particularly troublesome form of insider trading abuse' has developed in the past decade without full public .discussion of its ethics or its legality. 2 This abuse has spurred significant commentary.' Corporate control transactions of this type, known as insider leveraged buyouts," management buy- 1. For a discussion of insider trading and its historical development, see infra notes 26-134 and accompanying text. 2. Stein, Going Private is Unethical, FORTUNE, Nov. 11, 1985, at 169 [hereinafter cited as Stein]. One commentator asserts that "[i]nsider leveraged buyouts are the newest wrinkles in the endless efforts of promoters and entrepreneurs to misuse the system of public corporations.