A company is purchased, as in any buyout, although in a leveraged deal virtually all the money is borrowed.

"Well, the expectation is that leveraged deals are going to be harder to do," he said.

The idea is absurd, says James Grant, editor of a newsletter that consistently casts a wary eye at highly leveraged deals.

In January, Whirlpool announced it intended to leave the aerospace business and stop financing highly leveraged deals.

Mr. Griffin took over Resorts in 1988 in a highly leveraged deal.

Banks have become more cautious about financing highly leveraged deals.

In a highly leveraged deal that valued the company at about $915 million, Mr. Griffin put up just $50 million.

Bankers note that European investors are less comfortable with the higher levels of risk inherent in financing leveraged deals.

This advice is particularly geared to contested bids or where the downside risks are high (eg leveraged deals).

"Many of the leveraged deals are starting to unravel," he said.