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To: Cogito who wrote (78565)10/5/2008 12:58:58 PM
From: Win-Lose-Draw1 Recommendation  Read Replies (1) | Respond to of 213176
 
Sure you can. The purchase money is effectively a bridge loan, secured against the assets (in this case cash) that you don't yet technically own. This used to be done all the time, there used to be so many buy-out raids companies would intentionally keep their cash holdings low so as to avoid becoming a target.



To: Cogito who wrote (78565)10/6/2008 12:34:09 PM
From: Lizzie Tudor  Respond to of 213176
 
But you can't finance a leveraged buyout with money from the company you're buying.

Since when? Is this another rule with unintended consequences that came from SOX like mark to market?