News that IBM just concluded a $20 billion bond issue to pay for the acquisition of Red Hat was a reminder for the absurd terms of this Folie de Grandeur (or maybe desperate attempt to halt the decline of Big Blue). Ten times Sales? If that works out I will eat my hat. But on a more serious note, should there be stricter oversight when CEO's gamble with shareholder money? Not only on acquisitions but also on disposals (which often are on terms favourable to insiders in the case of MBO's)?
(9-May-2019)
IBM Sells $20 Billion of Bonds as Market Defies Trade Drag
Last week, the SEC’s Office of the Investor Advocate – which is also known
as the “OIAD” – announced that it had delivered this 24-page report to
Congress ...
19 hours ago
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