Merrill Lynch says COH is likely take out candidate. Question is what will the premium be? At around 10 times EBITDA that is around 17 billion. Ex-cash the company is around 13 billion now. this is a 4 billion premium which is 30%. This would put the takeout figure around 65/share. Still way under the recent high so management may hold out for a print in the 70's which would still be a great deal for any PE firm.
COH throws off massive amounts of free cash flow and has almost 900 million in cash on the balance sheet and negligible (22M) debt.
Merrill Lynch is just trying to drum up business. A buyout would have to be friendly and I really don't think Lew wants to sell. Why would he? He doesn't want to retire, he loves what he is doing. Don't waste your time on that chatter. Buy stock in a company at a good price that has great management and a great business and the rest will take care of itself.
you are such an idiot. If you look at the history of takeovers... companies that have actually been taken over were taken over without anyone suspecting it.... with all this noise.... COH is definitely NOT a takeover candidate and will not be taken over.