RE:RE:RE:RE:RE:Business The FED doesn't have any money either, how do they buy treasuries? They print their money out of thin air is how! AGNICO or any other company could "print" new shares of stock to utilize as their currency. Seems to me that AGNICO's share price is much stronger than Newmont's is.
Cash in the bank is irrelevant. Either AEM or NEM could buy us out with stock. All that matters is how much dilution can the acquirer justify to their shareholders. Back to my 50% of NPV per share figure. If the BoD of one of my companies approached me and said we can buy $5 billion for the equivalent of $2.5 billion and it will have no effec on our cash in the treasury, I would have no problem with the deal. In fact, it would be preferred since cash can be retained to pay the higher dividends that would be required due to more shares outstanding.
Cash is for the owners (dividends) and shares are for acquisitions. This is M&A 101 that any exec worth his salt should know.
There are no fiscal boundaries holding back any major from a bidding war, come one and come all I say!!!