SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Speculating in Takeover Targets
CTG 7.075-2.5%3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ahda who wrote (4002)10/15/2015 11:48:28 AM
From: richardred  Read Replies (1) of 6521
 
With such a large amount to finance. It will be interesting to see the interest rate they will be paying and bond rating they receive. This to attract corporate bond buyers.

Related
FWIW-I recently bought back into OLN. Cramer had very negative comments about their bond offering financing the deal. I'm currently not to worried. Just for the fact I'm in it more long term and I know when the housing market recovers so will OLIN. Hedge funds have been increasing their stakes in OLIN. Being I have known the company fairly well since the early 80's. I know the profits CA can bring in. Merger completion snip> Olin now is the largest integrated chlor-alkali producer with top-tier low-cost facilities and has significantly diversified its product and geographic base. IMO the hedge funds meanwhile will push for a Winchester spin-off to make the company a pure play commodity chemicals business.

RE:Cramer can see the other side of the risk coin when he looked at Olin, which is buying Dow Chemical's commodity chemical business. It had to borrow at a rate of 9.75 percent last Friday in order to obtain the money to finance the deal. This interest rate was insanely high, in Cramer's opinion. In fact, it is unrealistic for most companies to pay without risking default. So, in this case, the decline in serial acquirer stocks does make sense to Cramer. "I think if a company's future growth is going to rely on acquisitions and those acquisitions need debt, you have to accept that the window for cheap debt for these kinds of roll-ups is closing," Cramer said.
cnbc.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext