Re:Hong Kong Exchanges Bids $39B to Take over London Stock E...
by robocat on Wednesday September 11, 2019 @03:07PM
(#20943608)
Not at all: acquisitions can be funded by debt i.e. LSE could have borrowed $27b to buy their strategic asset.
It is a "cash-and-share" transaction, the cash is borrowed. If it were shares only, you take ownership and you give $27b of newly minted shares to the previous owners (as a very crude approximation).
Of course, there's a lot more going on than just the above!
It is a "cash-and-share" transaction, the cash is borrowed. If it were shares only, you take ownership and you give $27b of newly minted shares to the previous owners (as a very crude approximation).
Of course, there's a lot more going on than just the above!