Strength as a Weakness?

Amgen, Baker Hughes, Dow Chemical and a handful of other corporations with high credit ratings and sagging share prices have become leveraged buyout candidates. Observers say that as the prospect of higher bond yields and more expensive debt appears, certain companies with the best ability to sustain debt payments will look more attractive to buyout shops.

“They’re absolutely better candidates,” said Lance Pan, director of investment research at Capital Advisors Group in Newton, Mass., who compiled the LBO list.