In deal-making, the appeal of cash is obvious. Cash offers a cleaner exit for investors, particularly foreign ones. It has a value that will not fluctuate the way that stock prices can between when a deal is announced and when it closes.
In retrospect, it’s easy to say we could have guessed it:
Why didn’t some investors put 2+2 together and figure out that Perot Systems might be a target for Dell — before that is, Dell announced its $3.9 billion cash deal to buy Perot.
– Eric Auchard is a Reuters columnist. The opinions expressed are his own –
By Eric Auchard