Reading the news of Allco Trading Halt this morning, this term (management buyout) catched my attention. Some guys in the stocks discussion board suggested that management buyout is a possible trading halt reason.
Allco did not really specify the reason for their halt, so I guess whatever it is (the reason), we will have to wait for the unnouncement on Wednesday.
Back to Management Buyout.
What is a Management Buyout? Wikipedia stated that A management buyout (MBO) is a form of acquisition where a company's existing managers acquire a large part or all of the company.
In many cases the company will already be a private company, but if it is public then the management will take it private.
For more reading: http://en.wikipedia.org/wiki/Management_buyout
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