"“We have concluded that your proposal is neither credible nor attractive,” eBay chairman Paul Pressler said, adding that the board of directors “is confident the company, under its current management team, is well-positioned to continue to drive sustainable growth.”"
"Cohen has claimed that he has a $20 billion debt financing commitment letter from TD Bank, but it is contingent on the combined company having an investment-grade rating. Moody's said last week the deal would be credit negative for eBay. Cohen has also argued that by combining GameStop and eBay he could cut costs and find synergies to create a much bigger enterprise."
"The rejection could lead to a hostile bid as GameStop CEO Ryan Cohen had said he was willing to take the offer directly to eBay shareholders, possibly by calling a special meeting. Cohen has also argued that by combining GameStop and eBay he could cut costs and find synergies to create a much bigger enterprise. He said he could boost eBay's profitability by replicating GameStop's cost-cutting drive and use its 600 U.S. stores into a physical network to help turn eBay into a tougher rival to Amazon."
"Analysts and investors have doubted whether the half-cash, half-stock bid from the $12 billion US videogame retailer for a company nearly four times its market value would close. EBay stock has been trading far below the offer price of $125 US per share since the bid was made earlier this month. It fell one per cent to $107 US before the bell, while GameStop was down four per cent."
eBay rejected GameStop’s $56 billion US takeover proposal, citing doubts about the credibility and attractiveness of the offer and concerns about financing. The bid was structured as half cash and half stock, and analysts questioned whether it would close given the size gap between the companies. eBay shares traded below the $125 per-share offer price after the bid was announced. eBay’s chairman said the board was confident in continued sustainable growth under current management. GameStop’s CEO indicated willingness to pursue a hostile approach by taking the offer directly to eBay shareholders. The financing claim relied on a debt commitment letter contingent on an investment-grade rating, and Moody’s indicated the deal would be credit negative for eBay. GameStop also projected cost cuts, synergies, and a physical retail network to strengthen eBay’s competitiveness.
#mergers-and-acquisitions #corporate-takeovers #financing-and-credit #retail-and-e-commerce #stock-market
Read at www.cbc.ca
Unable to calculate read time
Collection
[
|
...
]