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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: E_K_S who wrote (44484)9/21/2011 10:47:12 PM
From: Keith J  Respond to of 78705
 
That's a boatload of cash to pay out.

KJ



To: E_K_S who wrote (44484)9/21/2011 11:00:53 PM
From: NikhilJog  Respond to of 78705
 
ha! so i was right afterall...



To: E_K_S who wrote (44484)9/22/2011 12:28:05 AM
From: Spekulatius  Respond to of 78705
 
re GR, UTX - 17x EBIT that is a lot of pay for GR. I don't think it's a good deal. For one thing, the valuation looks rich, second it does not help with diversification (GR has quite a bit of military business) and third with GR aircraft engine components, UTX now competes with GR's customers.

This only works because of cheap debt financing (75% of the cost is debt financed) and it looks like all the synergies and will accredit to the seller.