Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
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.

TJG
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.