Why did not SHW use stock to pay for all or some of the transaction?
Because Mexicans are smart enough not to accept SHW stock as a payment not even for a small percentage.. That is why I think. If this is such a good deal, as expressed by many longs and some media outlets, why oh why the sellers do not want to own the new company shares? I think that is one ugly question for longs..
Second question is, how much is that going to cost SHW to service that debt of 2.4 B debt? I do not think it is 0, ha ha
As for the SHW stock rising yesterday, that was an anomaly, I am guessing somebody is preparing SHW for the eventual fall when they announce the financing deal, so it hurts a little bit less
Thanks for your insight!!! Your brilliant analysis that "somebody is preparing SHW for the eventual fall when they announce......" lol. The Company will fund this internally and through the sale of bonds which will be purchased very quickly from various financial institutions. Few companies have a couple of billion sitting around waiting for an acquisition to become available. This acquisition will be absorbed over the next several years just like all the other acquisitions completed during the last couple of decades. Obviously, investors are loving this.