Circa Pict. & Prod. Co. Intnl Inc. (fka CPPD)

[realmoney2]

It appears that in making bids for the takeover of another company, utilizing borrowed funds is common. I have been researching this and companies that want to buy will borrow $$ and "back" it with the earning potential or current assets of the company it is acquiring. If there is a source of revenue from the company they intend to acquire, that makes the people who ponied up the $$ feel better.

The company looking to acquire can also use its own assets as collateral, or the investors can put up money based on the pure earning potential of the new company.

I'm no expert, just wanted to share...