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What happens to acquired firm cash?

Posted: Fri Jan 24, 2014 10:42 pm
by WilliamMGary
I haven't taken the time out to find out, but does anyone knows what happens to the acquired company cash?

For example:

Firm A merger with Firm C who has $30 billion in cash, what happens to the $30 billion? I know shares carry over, but not sure about the cash on the books.

Re: What happens to acquired firm cash?

Posted: Wed Jan 29, 2014 10:27 am
by tosh
a big merger party? 8-)

Re: What happens to acquired firm cash?

Posted: Wed Jan 29, 2014 2:43 pm
by WilliamMGary
I might need to test this out because if the cash doesn't transfer I think storing the firm cash into equity and then merge and sell might be a way to get it to carry over, if it doesn't already.

Re: What happens to acquired firm cash?

Posted: Fri Jan 31, 2014 3:46 pm
by counting
Cash does transfer.

The debt(loan) as well.

Re: What happens to acquired firm cash?

Posted: Sat Feb 01, 2014 4:13 pm
by WilliamMGary
Thank you.