Classify Payment Method of M&A Transaction

Hi,

I have a question regarding the payment method of acquirers in large (public) transactions. Normally, the buyer pays with own (newly issued) stock, cash or a mix of both.

But as what are these cases considered?

  • Paying partly with stock options (the seller / target receives stock options): is that stock or cash payment?

  • Convertible bonds (the seller / target receives payment in form of convertible bonds): again, is that considered as a stock or a cash payment?

Thanks for any help!

1 Comments
 

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