Cashed up vulture financiers ready to hit

Cash-rich financiers such as Warren Buffett, Wilbur Ross and Ron Perelman are
preparing to pounce on US companies struggling in the financial turmoil, said to
herald a new era of ‘vulture investing’.

After years of being pushed to the sidelines by high valuations and fierce
competition from private equity, so-called ‘value’ investors believe the
financial and capital market crisis now offers a great opportunity to buy
companies at bargain prices, according to the Financial Times (FT).

Ross, who is considering either buying into one of the troubled monoline
insurers or setting up a new one, told the FT the turmoil provided an
embarrassment of riches. ‘Nowadays so many things are starting to come unglued
that the real problem is sorting out what the real opportunities are,’ he said.

Perelman, who has picked up a collection of businesses such as Revlon by
taking over companies in distress, said he regarded the current conditions as a
‘buying opportunity’.

story in the Financial Times

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