ask yourself this hypothetical:
company A has a market cap of $100 million. It wishes to buy 50% of company B for $500 billion.
It will do this via 2 ways: debt financing on 100 billion and issuance of shares of 400 billion.
"isn't it value creation?"
You are looking at this from the company's balance sheet, not from the shareholders perspective. Something to keep in mind and I'm not going to spell it out. People need to work this out for themselves.
Ann: BetMakers submits proposal to acquire Tabcorp assets, page-569
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