Lenovo Acquisition Sources of Funds Question
I'm trying to understand the following sentence (from NY Times dealbook article about Lenovo's $2.3B acquisition of IBM's server business): "Lenovo said it would settle the transaction with $2 billion in cash and the balance in its own Hong Kong-listed shares". Does this mean than Lenovo will issue $300M worth of common stock to cover the difference between the $2.3B price and the $2B in cash? Also, how would you show this in a sources and uses table?
Link to article: http://nyti.ms/1dYm1Xr
That's exactly what it means. They might offer the shares from treasury if they have any in order to reduce dilution.
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