Citigroup Earmarks Tesla As Take Over Target For Apple Cash Hoard

Citigroup listed seven companies as potential takeover targets for Apple Inc, including Netflix, Walt Disney and Tesla Inc, as a way to put its cash hoard of more than $250 billion to work.

With over 90 percent of its cash sitting overseas, a one-time 10 percent repatriation tax would give Apple $220 billion for acquisitions or buybacks, Citigroup analyst Jim Suva said in a note to clients.

U.S. President Donald Trump's tax blueprint, which was unveiled last month, proposes allowing multinationals to bring in overseas profits at a tax rate of 10 percent versus 35 percent now.
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MDarringer - 5/9/2017 10:17:04 PM

+2 Boost

AMEN!

mre30 - 5/9/2017 10:03:31 AM

+7 Boost

They should just wait for a potential restructuring auction. Any financial due diligence person will take a 5-minute look at Tesla's financials (steady, significant losses especially at the cash flow level), Tesla's basically non-existent intellectual property (the vast majority of Tesla technology is non-proprietary), the California union obligations and those financial professionals will not in good conscience buy Tesla in anything other than a chapter 11 where they can repudiate all the union employees.

The glue that holds Tesla together is charismatic Elon Musk - and I suspect that unless Tesla is his company, he won't be involved.

Thoughts and/or flames?

222max - 5/9/2017 11:35:00 AM

+7 Boost

Analysts are almost always pulling crap out of the sky.

MorePower - 5/10/2017 3:04:01 AM

0 Boost

"Big" three are dinosaurs of the past. Apple knows that neither of these brands holds the cache of a company apple would purchase.

MorePower - 5/10/2017 3:06:56 AM

0 Boost

You guys are over-thinking it. Think like Apple does; i.e. pay a company under the table to build it for you.

Apple will pay Tesla for a certain number of Model 3s, either rolling chassis or chassis & frame with a custom Apple interior. Running Apple maps for sure.

MorePower - 5/10/2017 3:07:43 AM

0 Boost

frame = body

CANADIANCOMMENTS - 5/10/2017 12:54:25 PM

+2 Boost

I always find articles focused on what Apple should do with its money funny. 90% of it is overseas and will not be brought to the US until conditions are right. Apple likely knows that it is more like a record company. They always need a new hit. The music could stop at some point therefore cash on hand is great.