With no deal on horizon, Apple shares are slipping; but bondholders are taking long view and show confidence in company's future
Article Abstract:
Apple shares hit a new 52-week low as the likelihood of a takeover dwindles, but the light trading reveals that most investors believe the company has a future. Apple shares closed at $27.313 on Jan 30, 1996, down $1.813, a drop analysts see as an indication that the stock is finding its natural level after being boosted by takeover rumors. Apple's 6.5% bonds, which mature in the year 2004, dropped only five basis points, or one-twentieth of a percentage point. The biggest cause for concern is Standard & Poor's lowering the company's rating to below investment grade, although Moody's Investor Service still lists the stock as low investment grade. Apple has yet to release a plan for reorganization, but the company did issue an internal memo stopping all research and development spending until such a plan is presented to the board. The plan is expected by the middle of Feb 1996.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Apple and Sun Microsystems said to be on verge of deal
Article Abstract:
Sun Microsystems has nearly completed a deal to acquire Apple for approximately $27 per share, according to sources close to the ongoing discussions. Should the companies reach an agreement, the combined company would instantly command a tremendous share of the computer market and be technologically poised to capitalize on the burgeoning Internet market. Sun's initial offer for Apple was considerably less than Apple's stock price, an indication that Sun has detailed knowledge that Apple's financial state is worse than reported. Apple's inventories have risen to $1.95 billion, and the company is working to reduce this overhead in an effort to raise capital.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Comment about this article or add new information about this topic:
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