IUF - an international trade union federation representing workers in agriculture and plantations food and beverages hotels, restaurants and catering services all stages of tobacco processing affiliated trade unions countries - representing 12 million workers International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers Associations (IUF)

Diversifying Risk: New Financial Instruments Global derivatives: US$ 480 trillion (8 x global GDP) Credit Default Swaps: US$ 45 trillion on US$ 5.7 trillion of corporate bonds/30% on indexes representing baskets of debt Outstanding LBO debt: ?

Leveraged buyouts caused sales of high-risk, high-yield debt to rise 70 percent to a record $1 trillion during the first half of Bloomberg, July 27, 2007

Going Private: TDC taken over by Permira, Apax, Blackstone, KKR, Providence Equity 80% debt financed debt to assets ratio from 18% to over 90% equivalent of half the company's assets immediately distributed in shares to new owners TDC no longer a leader in wireless technology

Going Private: Findus Group Purchased by EQT in plants, 3,400 employees plants, 2900 employees research staff reduced from 200 to 40! sold to CapVest in 2006 (secondary buyout)

Going Private: Cognis 2000 after-tax profit 109 million Bought by Permira in 2001 for 2.5 billion million in equity Permira & Goldman Sachs take out 850 million in dividend recapitalizations after-tax loss of 136 million debt refinanced for 1.65 billion with new loans and notes