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If they can get cash at a good deal, why not? 10 years later, if they do make a truckload of money from overseas expansions, they can pay back their investors w
by khc 10y ago
If they can get cash at a good deal, why not? 10 years later, if they do make a truckload of money from overseas expansions, they can pay back their investors with oversea cash without paying American taxes. Double win!
- fiatmoney 10y agoIt is typically not legal to pay out (via dividends or share buybacks) to different investors of the same class in differing amounts. I'm not enough of a tax lawyer to say if you can do a miniature version of that by buying back stock of a US company listed on foreign exchanges without repatriating capital, but after arbitrage you would expect the effect to ripple back to the US-listed share price by the same amount.