Citigroup detailed seven companies as potential takeover goals for Apple Inc, including Netflix, Walt Disney, and Tesla Inc, in an effort to put its cash hoard greater than $250 billion to work. With over 90 percent of its cash seated abroad, a one-time ten percent repatriation taxes would give Apple $220 billion for acquisitions or buybacks, Citigroup analyst Jim Suva said in an email to clients.
U.S. Chief executive Donald Trump’s duty blueprint, that was unveiled previous month, proposes allowing multinationals to generate overseas gains at a duty rate of 10 % versus 35 percent now. “Since one of the new administration’s top priorities is to permit US companies to repatriate international cash at less duty rate, Apple may have a far more acute need to place this cash to work with,” Suva said.
The analyst is ranked three out of five superstars for his advice on Apple, regarding to Thomson Reuters StarMine. The other potential acquisition focuses on include gaming developers Activision Blizzard, Electronic Arts and Take Two Interactive Software as well as video recording loading service Hulu.
The analyst said the focuses on were screened considering five standards – proper fit, global size, business deal size, few non-strategic property and likely effect on Apple’s talk about price. Under great pressure from shareholders at hand over more of its cash hoard, Apple lately boosted its capital go back program by $50 billion, increased its talk about buyback program by $35 billion and elevated its quarterly dividend by 10.5 percent. Reuters