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TheCountOfNowhere

Apple And Microsoft Borrowing Cheap Money...despite Having Loads Already.

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http://www.theregister.co.uk/2015/02/11/apple_microsoft_debt_deals/

"Apple is reported to have raised 1.25bn in Swiss francs ($1.19bn) from two bonds that will mature in 2024 and 2030 with rates of 0.25 and 0.7 per cent."

"Meanwhile, earlier this week Microsoft took out what’s claimed to be the largest package of loans in its history: $10.75bn."

"Microsoft isn’t short of cash – it sits on a $92bn in cash. Similarly, Apple isn’t rubbing the pennies together: it sits on a pile of $155.2bn in cash and securities."

WTF !!!! :blink:

Edited by TheCountOfNowhere

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I think the money is to be used for a share buy back.

"The payoff for Apple is threefold: not only is it getting cheap debt, it’s using the loan to buy up shares in Apple and pay dividends to shareholders."

"Buying shares increases the value of the Apple holding, while borrowing to pay shareholders preserves the value of Apple’s stock and its cash pile."

:ph34r:

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I thought it was to do with the tax they would have to pay if they brought their profits back to America. Cheaper to take out a loan than spend their own money and pay tax.

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