09-11-2015, 02:20 AM
GILD announced a $10B debt offering this morning, which is pretty significant considering that is roughly 6% of the current market cap.
My guess is its for one of two things:
1. Accelerated share repurchases since the stock is trading at less than 10 times expected 2015 earnings.
2. Acquisition of another company to diversify growth prospects as GILD shares are too undervalued to do an equity deal and it doesn't have enough domestic cash on hand to do a large acquisition.
My guess is its for one of two things:
1. Accelerated share repurchases since the stock is trading at less than 10 times expected 2015 earnings.
2. Acquisition of another company to diversify growth prospects as GILD shares are too undervalued to do an equity deal and it doesn't have enough domestic cash on hand to do a large acquisition.