Microsoft May Sell Bonds To Finance Yahoo! Buy
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Microsoft Corp. will probably sell bonds for the first time to finance its proposed $44.6 billion takeover of Yahoo! Inc.
The world’s largest software maker will use cash and stock to pay part of the $31 a share it has bid for Yahoo in the biggest technology takeover ever. It will raise the rest in a debt sale, the company’s chief financial officer, Chris Liddell, told analysts yesterday in New York. He didn’t say how much he’s likely to borrow.
A Microsoft bond may attain the highest AAA rating, according to head of syndication at Calyon New York, James Crandall. He compared the maker of the Windows operating system with General Electric Capital Inc., last year’s most prolific borrower, and Warren Buffett’s Berkshire Hathaway.
