«We don't think the Brazilian government will look favorably on foreign ownership (in this case U.S.)
of a strategic asset like ERJ,» he said.
Not exact matches
Lured by the prospect
of a steal, would - be entrepreneurs have been joined in the bidding by companies interested in expanding through
strategic acquisitions and private equity groups
like SeaFort seeking solid «old economy»
assets.
«Something we've called for a long time is they could pursue basically
like a pipe deal, a
strategic investment from another partner into Yahoo,» Eric Jackson, managing director
of SpringOwl
Asset Management, said Tuesday on CNBC's «Closing Bell.»
«High - tech, high - growth innovative start - ups create value fast, efficiently and effectively, and can be a
strategic asset for a country
like Greece at this time,» says Glezos, whose company has joined the small but growing ranks
of promising Greek start - ups such as Gipht.me and Metavallon.
Questions
like this cut through the clutter
of what you don't know, and allow you to estimate how much capital they will have available to increase dividends, buy back stock, or buy other
strategic assets.
What I can say from a
strategic perspective is that 1) I
like a purchase
of assets at historically low prices, 2) MFC has some expertise in the commodity business so this isn't completely outside their playing field, 3) perhaps, worst case, there could be a strategy to purchase the
assets in bulk at a distress sale and then sell them off piecemeal for a profit, and 4) while this may be a role
of the dice (who knows where gas prices will be a year from now) MFC is not betting the ranch; the total investment will be about CDN $ 75 million ($ 33 for the outstanding shares, $ 8 million for the warrants, $ 30 million additional investment and I've estimated $ 4 million for transaction costs), or less than 25 %
of MFC's current cash hoard.
Most people will tell you there are good forms
of debt and bad forms
of debt, and I understand what they're saying, they're essentially talking about debt that's
strategic and that lets you got ahead,
like if you borrow and you get a home loan, for example, a house is an
asset that potentially can appreciate in value.