| To: richardred who wrote (4001) | 10/15/2015 9:29:53 AM | | From: Ahda | | | | There will no stock dilution in this.
Bloomberg OCT 15
Anheuser-Busch InBev NV is planning to sell bonds worth as much as $55 billion to finance its $106 billion takeover of SABMiller Plc, setting a record for debt issuance to fund a corporate acquisition, according to people familiar with the matter. |
| | Speculating in Takeover Targets | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: Ahda who wrote (4002) | 10/15/2015 11:48:28 AM | | From: richardred | | | | 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 |
| | Speculating in Takeover Targets | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: richardred who wrote (4003) | 10/15/2015 11:55:52 AM | | From: Ahda | | | | I can't comment on OLIN until I look at it thoroughly
Dow could have numerous law suits in their chemical division which could be another reason for the high interest rate. |
| | Speculating in Takeover Targets | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: Ahda who wrote (4004) | 10/15/2015 12:10:51 PM | | From: richardred | | | | | You could very well be right. I haven't looked into that deeply, but most chemical companies have had past lawsuits on chemical contamination. You might also want to add pension liability in. Olin I know in the past had to set aside reserves for remediation and pension liability. I'm fairly sure Dow has to. |
| | Speculating in Takeover Targets | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: richardred who wrote (4005) | 10/15/2015 12:51:55 PM | | From: Ahda | | | | I think after reading about OLN and Dow that I shan't have coffee but beer for breakfast.
I know when the housing market recovers so will OLIN.
Ca water problem we have a huge shortage so desalinization plants we need, Housing we have a shortage of here area that creates overpriced property so here market has recovered but too much so . Perhaps that means interest rates go up and calif could be looking at dry and dead . |
| | Speculating in Takeover Targets | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: Ahda who wrote (4006) | 10/15/2015 1:11:23 PM | | From: richardred | | | | >Ca water problem we have a huge shortage so desalinization plants we need, Housing we have a shortage of here area that creates overpriced property so here market has recovered but too much so . Perhaps that means interest rates go up and calif could be looking at dry and dead .
That reminds me, In due time. I like this play in controlled crop growing for lack water in Calif.
LNDC
Message 29410056
Message 28173401
P.S. I can't see how desalinization plants would be cost effective. Random thought-Volume wise given that bottled water is more expensive than a bottle of oil. Maybe we can start building Water Pipelines? :+ ) |
| | Speculating in Takeover Targets | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: richardred who wrote (4007) | 10/15/2015 1:50:00 PM | | From: Ahda | | | | it is not a matter of cost it is a matter if so calif does not find a solution to the water problem the ca gov deficit might end up as large as the nations.
Increase in utilities cost at some point will demand much higher incomes from the private service sector. I imagine farming will go to mexico long range and you have increased cost to operate a business that could mean that calif will not draw new business growth. So assisted living and health care and entertainment on the rise.
Key here is organic and problem is veggies now lack that farm fresh feel . What nutrients do a polymer coating add? Does Dow make the coating? |
| | Speculating in Takeover Targets | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (2) |
|
| |
