3 ms·
I'm talking about paying off a credit card with the same credit card. And the leveraged buyout, yes, the board could pretty much raise the cash to buy control
by bonaldi 14y ago
I'm talking about paying off a credit card with the same credit card.
And the leveraged buyout, yes, the board could pretty much raise the cash to buy control -- but, and this is the point, they couldn't do it with Apple's cash pile, which is what the OP was suggesting.
- meric 14y agoActually, they can. They can offer a deal with shareholders where at the end of it Apple's cash pile will go to the shareholders instead of staying in the company. Typically this means the price of buying the company is reduced by that much, which is practically using Apple's cash pile to partially pay for Apple.
- jarek 14y agoI read OP's question as intending to use the cash pile to fully buy the company, rather than leveraging the pile and paying partially.
- a2patel 14y agoThis happens all the time. Some former companies were 'acquired' this way. Portal Player and Transmeta for example. In Transmeta's case, they were acquired for $255M in cash, and Transmeta had $255M in cash. The only cost to the acquirer (in this case Intellectual Ventures) were salaries till the deal closed and executive golden parachutes - totaling about $11M.
- deleted 14y ago[deleted]