does anyone know?, page-2

In the context of an acquisition cash really is a zero sum prospect. If you are going to acquire a company with 6 million cash, then really you're going to have to pay 6 million cash plus the value of the business. Alternatively if the cash is distributed prior to closing the purchase price would be reduced to that extent. The calculation methodology for EV or enterprise value is a good demonstration of this point. EV is a proxy for the cost involved in an acquirer buying 100% of a company. Involves market cap plus debt less cash (or net debt) given the zero sum nature of the cash. If BGL were to acquire with the cash they would just have to pay more. However that said, if they were to take over and they paid exclusively with script then I suppose they are kind of effecting a capital raising to raise cash in a way.