Posted on 02/22/2006 1:39:33 PM PST by Nasty McPhilthy
I don't know what the requirements were - the point is that NO American company bid for P&O - that should tell you enough right there.
Yeah, it will do. If I were in the business and had enough to bid, I would do so. If I didn't have enough, I wouldn't bother the Port Authority for nothing. The contract would state up front how much would be the minimum to be considered as a serious bidder, either net worth or a line of credit, either way. Staff of large horsepower can be hired overnight--they come out of the woodwork when they smell money.
Former U.S. Sen. Bob Dole was reported Wednesday as having been tapped to lobby the ports deal through Congress and company CEO Bilkey said the company is willing to do whatever the Bush administration asks to enhance shipping security to ensure the deal goes through. "We're very much committed to that," he said. "We think it's a great strategic fit."
Yes they do. DPW may be borrowing the money from a bank, but they will be wiring 6+B in cash to the seller's accounts.
They are not just handing over a promissory note in exchange for hard assets.
If I had to guess, I would say that this deal was put together by some London investment bankers...and then taken to DPW.
I'll bet you are exactly right.
Most deals of this magnitude are hatched by a banker dreaming of a fat advisory fee.
In the world of finance, that still isn't what one might call a cash transaction.
If you buy a car and pay cash...you don't borrow to raise the cash...same principal in the mergers and acquisitions biz.
Unless it has changed since I was in it...
No. This was done according to the law. And all this hoopla is asking for violation of law.
If you are still on the left side of that event, bow down to Him and jump to the right. IMHO.
Uh, yes it is.
Whenever an acquisition occurs, the financial community's first question is: was it done for equity or cash?
If DPW is not using equity to acquire this business, then it is using cash - whether that cash is borrowed or comes from operations is of absolutely no concern to the seller.
To him, it is cash.
What prompted this outburst?
I apologize for being abrupt.
Fair enough. I apologize for offending you.
Thx!
"True, but there are lots of ways to defer those taxes, and they get credit for income taxes they actually pay to non-US jurisdictions."
The "credit" never seems to quite cover the actual amount lost, and deferring taxes generally involves accepting some other penalty in their stead. Both conspire to drive down ROI.
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