Yahoo CFO, Chris Liddell stated that Microsoft may have to borrow money to finance its deal tagging Yahoo for a proposed $44.6 billion purchase.
Microsoft may use its available savings and its stock to pay the share of $31 which it had offered for Yahoo! Inc. The rest of the amount that Microsoft has to pay would be acquired from the capital markets which would be the first ever in the history of Internet.
Investors are requesting Microsoft to go for a debt for some time. Before the proposed deal, Microsoft’s shares raised to $30.51 a 6 cent increase in the Nasdaq Stock Market trading. However, on Feburary 1st, the day of the deal announcement, the shares had a dip of 6.6 per cent which was the largest fall since April 2006.
No comments yet.