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Old 20th Dec 2014, 22:48
  #41 (permalink)  
racedo
 
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That said some reports this morning are suggesting that the IAG bid valued EI at €1bn, which given that the company's gross cash position (the amount of cash they hold before deducting any debts) is over €900mn makes the valuation extremely low and, IIRC not too far off the old FR bid of some time ago.
Eh ?

Its like saying your house is worth a million but the mortgage is 900k, what you get out of it is 100k, not the million.

Also remember EI has to fork out €190 million.

Valued after taking account of debts so its the net cash that is of interest.

Think valuation is a bit on the high side but then again companies borrowing lots to buy stuff as yet another merrygoround takes off.
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