AVAYA had a Net Income of only 9 M on its last 10-Q report ending Dec 31, 2018 and yet it is receiving a buyout bid of over $ 20 a share - $ 2.2 + B - in addition to incurring debts of $ 3.2 B according to this news article:
In comparison of WIN and AVAYA’s Balance Sheets WIN’s tangible Assets exceed its intangilble Assets while AVAYA’s intangible Assets exceed its tangible Assets - so WIN has way more property value than AVAYA.
So let us put the same buyout bid of $ 2.2 + B cash and $ 3.2 B of Debt for AVAYA - $ 5.4 + B value - toward a buyout of WIN.
At an offer of $ 10.00 a share - $ 430 M - and incurring the remaining WIN Debt of about $ 5.8 B of Loans and Bonds on the books:
After the $ 430 M is deduducted from the $ 5.4 + B value of the buy out there would be approx $ 5 B left to apply to WIN’s $ 5.8 B of Loans and Bonds leaving a difference of only $ 800 M more - plus the annual MLA payment of $ 650 M - than AVAYA. Plus WIN has $ Billions more in tangible Assets than AVAYA.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.