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Subject:  Re: acquuisitions Date:  2/29/2000  1:38 AM
Author:  TJGypsy Number:  566 of 2244

That depends. In some cases, shareholders may feel that the company doing the acquiring may be stretching it's resources to thin. In addition to the cash outlay to buy the company, the acquiror will also be taking on the new company's debt, and there may be concern that it is to much.

In other cases, shareholders may feel that the acquisition does nothing to improve the purchasing company. Buying companies because you can isn't always a good policy.

Those are just a couple of the more obvious reasons I can think of. I'm sure other Fools can provide more information.

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