Re: GM's Butt buddies
 

On 15 Apr 2006 09:27:53 -0700, "Cool Jet" <pkelly49@hotmail.com>
wrote:

>Dale Worley wrote:
>> "Charles" <h90943@hotmail.commie> writes:
>> > > GM will be DEAD and BURIED before xmas 2006 - to be ressurected
>> > > as a division of Honda in 2007 albeit MUCH smaller and non-union.
>> >
>> > I would think that GM has the resources to buy Honda. Hmm 51% of GMAC,
>> > remaining 49%...
>>
>> I don't think so: GM market cap is $11B, HMC market cap is $59B. The
>> market has spoken...
>
>While I have no desire to take sides in this discussion, I have to take
>exception with your comment Dale. You can't buy diddley with "market
>cap". You need cash! ;-)


Sure you can. Companies do it all the time by bidding to exchange
shares of the acquiring company for shares in the target company. GM
shareholders would end up with shares in Honda, Honda would own all of
GM's assets (and liabilities) and Honda share value is not diluted
because the increase in shares outstanding is offset by increased
value of the company after the acquisition.

Of course this is all hypothetical when no one would pay $11B for GM
at this point.

Re: GM's Butt buddies
 

On 15 Apr 2006 09:27:53 -0700, "Cool Jet" <pkelly49@hotmail.com>
wrote:

>Dale Worley wrote:
>> "Charles" <h90943@hotmail.commie> writes:
>> > > GM will be DEAD and BURIED before xmas 2006 - to be ressurected
>> > > as a division of Honda in 2007 albeit MUCH smaller and non-union.
>> >
>> > I would think that GM has the resources to buy Honda. Hmm 51% of GMAC,
>> > remaining 49%...
>>
>> I don't think so: GM market cap is $11B, HMC market cap is $59B. The
>> market has spoken...
>
>While I have no desire to take sides in this discussion, I have to take
>exception with your comment Dale. You can't buy diddley with "market
>cap". You need cash! ;-)


Sure you can. Companies do it all the time by bidding to exchange
shares of the acquiring company for shares in the target company. GM
shareholders would end up with shares in Honda, Honda would own all of
GM's assets (and liabilities) and Honda share value is not diluted
because the increase in shares outstanding is offset by increased
value of the company after the acquisition.

Of course this is all hypothetical when no one would pay $11B for GM
at this point.

Re: GM's Butt buddies
 

In article <ididnRDT75p-JNzZnZ2dnUVZ_uWdnZ2d@comcast.com>, jcr
<nospam@nospam.com> wrote:

> > On 4/15/2006 11:42 AM ... Jason wrote:
> > In article <1240hi3hitvds1a@corp.supernews.com>, "Charles"
> > <h90943@hotmail.commie> wrote:
> >
> >> "Saint Electrolux 59" <combiner@3domingorf.com> wrote in message
> >> news:4c3e0$443c85b7$d1cc7ae7$32211@snip.allthenews groups.com...
> >>> GM will be DEAD and BURIED before xmas 2006 - to be ressurected
> >>> as a division of Honda in 2007 albeit MUCH smaller and non-union.
> >>>
> >>> Should be fun!
> >> I would think that GM has the resources to buy Honda. Hmm 51% of GMAC,
> >> remaining 49%...
> >> Of course they should buy Honda and let their management run the show. Give
> >> all of the GM managers early outs.
> >
> > It would be more likely that Honda would buy GM instead of GM buying Honda.
> > Please remember the situation involving Chrysler and Mercedes-Benz.
> >
> > However, I doubt that Honda would want the problems connected to taking
> > over a company that has the debt burden (eg paying for the retirement and
> > related health care costs of thousands of GM employees) if GM.
> > Jason
> >
> ...unless the government made a deal to accept some of the debt
> themselves so that Honda's buyout at least kept some of the debt and
> kept people working (and tax-payers). Interesting idea!

Great point. However, I doubt that Honda or any other foreign car company
would want all of the problems connected with owning and running GM. It's
my guess that the owners of Mercedes now reqret taking over Chrysler. I
read one article in a car magazine indicating that the automotive
engineers from Mercedes gave up on trying to fix the design problems
related to some of the engines that were used in Chrysler vehicles. They
solved the problem by placing Mercedes engines in those vehicles.
Jason

--
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Re: GM's Butt buddies
 

In article <ididnRDT75p-JNzZnZ2dnUVZ_uWdnZ2d@comcast.com>, jcr
<nospam@nospam.com> wrote:

> > On 4/15/2006 11:42 AM ... Jason wrote:
> > In article <1240hi3hitvds1a@corp.supernews.com>, "Charles"
> > <h90943@hotmail.commie> wrote:
> >
> >> "Saint Electrolux 59" <combiner@3domingorf.com> wrote in message
> >> news:4c3e0$443c85b7$d1cc7ae7$32211@snip.allthenews groups.com...
> >>> GM will be DEAD and BURIED before xmas 2006 - to be ressurected
> >>> as a division of Honda in 2007 albeit MUCH smaller and non-union.
> >>>
> >>> Should be fun!
> >> I would think that GM has the resources to buy Honda. Hmm 51% of GMAC,
> >> remaining 49%...
> >> Of course they should buy Honda and let their management run the show. Give
> >> all of the GM managers early outs.
> >
> > It would be more likely that Honda would buy GM instead of GM buying Honda.
> > Please remember the situation involving Chrysler and Mercedes-Benz.
> >
> > However, I doubt that Honda would want the problems connected to taking
> > over a company that has the debt burden (eg paying for the retirement and
> > related health care costs of thousands of GM employees) if GM.
> > Jason
> >
> ...unless the government made a deal to accept some of the debt
> themselves so that Honda's buyout at least kept some of the debt and
> kept people working (and tax-payers). Interesting idea!

Great point. However, I doubt that Honda or any other foreign car company
would want all of the problems connected with owning and running GM. It's
my guess that the owners of Mercedes now reqret taking over Chrysler. I
read one article in a car magazine indicating that the automotive
engineers from Mercedes gave up on trying to fix the design problems
related to some of the engines that were used in Chrysler vehicles. They
solved the problem by placing Mercedes engines in those vehicles.
Jason

--
NEWSGROUP SUBSCRIBERS MOTTO
We respect those subscribers that ask for advice or provide advice.
We do NOT respect the subscribers that enjoy criticizing people.

Re: GM's Butt buddies
 

On the chance that you all don't realize you're cross-posting, you
are...to the Subaru board.

Re: GM's Butt buddies
 

On the chance that you all don't realize you're cross-posting, you
are...to the Subaru board.

Re: GM's Butt buddies
 

Gordon McGrew wrote:
> On 15 Apr 2006 09:27:53 -0700, "Cool Jet" <pkel...49@hotmail.com>
> wrote:
> >While I have no desire to take sides in this discussion, I have to take
> >exception with your comment Dale. You can't buy diddley with "market
> >cap". You need cash! ;-)
>
>
> Sure you can. Companies do it all the time by bidding to exchange
> shares of the acquiring company for shares in the target company. snip

I repeat: "You can't buy diddley with "market cap". You need cash! ;-)"
Gordon, if you are the knowledgeable person you purport to be, you
would know that share exchanges require the "crossing" of cheques to
effect the purchase or exchange. i.e. cash! ;-)

Re: GM's Butt buddies
 

Gordon McGrew wrote:
> On 15 Apr 2006 09:27:53 -0700, "Cool Jet" <pkel...49@hotmail.com>
> wrote:
> >While I have no desire to take sides in this discussion, I have to take
> >exception with your comment Dale. You can't buy diddley with "market
> >cap". You need cash! ;-)
>
>
> Sure you can. Companies do it all the time by bidding to exchange
> shares of the acquiring company for shares in the target company. snip

I repeat: "You can't buy diddley with "market cap". You need cash! ;-)"
Gordon, if you are the knowledgeable person you purport to be, you
would know that share exchanges require the "crossing" of cheques to
effect the purchase or exchange. i.e. cash! ;-)

Re: GM's Butt buddies
 

In article
<jason-1504060842090001@66-52-22-113.lsan.pw-dia.impulse.net>,
jason@nospam.com (Jason) wrote:

> It would be more likely that Honda would buy GM instead of GM buying Honda.
> Please remember the situation involving Chrysler and Mercedes-Benz.
>
> However, I doubt that Honda would want the problems connected to taking
> over a company that has the debt burden (eg paying for the retirement and
> related health care costs of thousands of GM employees) if GM.

As you point out Honda isn't that stupid.
IMO GM will have to face a major restructuring and the sooner they get
on with it the better for all.
As they are now going they are just stressing the employees more and
more, with the real possibility of losing their jobs hanging over their
heard. Not the best environment to build quality vehicles.

Re: GM's Butt buddies
 

In article
<jason-1504060842090001@66-52-22-113.lsan.pw-dia.impulse.net>,
jason@nospam.com (Jason) wrote:

> It would be more likely that Honda would buy GM instead of GM buying Honda.
> Please remember the situation involving Chrysler and Mercedes-Benz.
>
> However, I doubt that Honda would want the problems connected to taking
> over a company that has the debt burden (eg paying for the retirement and
> related health care costs of thousands of GM employees) if GM.

As you point out Honda isn't that stupid.
IMO GM will have to face a major restructuring and the sooner they get
on with it the better for all.
As they are now going they are just stressing the employees more and
more, with the real possibility of losing their jobs hanging over their
heard. Not the best environment to build quality vehicles.

Re: GM's Butt buddies
 

So GM can come up with 59 billion in cash? REally?

Honda could issue new shares for cash.

Re: GM's Butt buddies
 

So GM can come up with 59 billion in cash? REally?

Honda could issue new shares for cash.

Re: GM's Butt buddies
 

You don't know what the hell you're talking about!

Share for share purchases done all the time. And no, you don't have to
"cross cheques". YOu just made that gibberish up! Shares are issued,
simple as that. Don't have to have 100 billion in cash to issue 100
billion in shares.

Idiot.

Re: GM's Butt buddies
 

You don't know what the hell you're talking about!

Share for share purchases done all the time. And no, you don't have to
"cross cheques". YOu just made that gibberish up! Shares are issued,
simple as that. Don't have to have 100 billion in cash to issue 100
billion in shares.

Idiot.

Re: GM's Butt buddies
 

In article
<jason-1604061041030001@66-52-22-82.lsan.pw-dia.impulse.net>,
jason@nospam.com (Jason) wrote:

> Great point. However, I doubt that Honda or any other foreign car company
> would want all of the problems connected with owning and running GM. It's
> my guess that the owners of Mercedes now reqret taking over Chrysler. I
> read one article in a car magazine indicating that the automotive
> engineers from Mercedes gave up on trying to fix the design problems
> related to some of the engines that were used in Chrysler vehicles. They
> solved the problem by placing Mercedes engines in those vehicles.

I read the opposite, it's Chrysler engines in the Mercedes and Mercedes
transmissions and outward in the RWD Chryslers.

To be specific he Chrysler hemi V8 and 3.5L V6 are used by Mercedes.

With the FWD Chrysler Caliber and the Mercedes B-200 they obviously use
the same complete drive train, tuned up a bit for the market each is in.
The 4 cyl engine and CV transmission have design involvement by a number
of other companies.