Monday, May 16, 2005

All cash deals - another reason to like them.

A few months ago, I listed various reasons I like all-cash takeovers.

There is now another reason to like them, especially if you already own stock in the company doing the buying.

A study reported that such deals have a better chance of succeeding and rewarding shareholders (of the buyer). The most likely reason is that with a cash deal, there is no room to play stupid accounting tricks, and the buyout intentions are purely strategic.

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