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biomaven0

12/21/13 11:13 PM

#171730 RE: Rocky3 #171729

If that were the case, the acquiring company should be buying back its own shares, either with cash or with borrowing money - that too would be accretive.

My reason is an actual, quantifiable economic cost (with the amount mostly dependent on some particular circumstances of the acquired company - could be substantial, could be trivial). Doesn't depend on market sentiment in any way or whether either company is profitable.

Peter