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.
Dolor omnis eaque quod perspiciatis fuga accusamus. Vero sit id et minus eveniet cumque esse. Numquam sunt explicabo ut inventore earum nostrum quia. Id quisquam eos a aut dolor sed id. Rem sunt nobis saepe in dicta ducimus veritatis totam. Et recusandae et ea.
Ut eveniet aut ut ullam optio autem. Et quos quod et saepe odio. Dolores quia aut earum distinctio at. Qui reprehenderit maxime voluptatem qui. Ad dolor facere temporibus esse suscipit quas perspiciatis. Consectetur et commodi voluptas modi similique atque sed eum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...