|
|
On the last Sunday of October, IBM announced the biggest M&A deal in its history, agreeing to acquire Red Hat, the world’s leading provider of open-source cloud software, for $190 per share. That’s a 64% premium to the target’s previous closing price and values Red Hat at $34 billion, with the consideration to be paid in cash.
IBM has had to suspend its share buyback programme for the next two years to finance the deal from available funds and debt without threatening its single-A rating or the steady dividend policy, for which many retail investors hold the stock, rather like a low-risk utility play.
Thanks for your interest in Euromoney!
To unlock this article:
