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    Pfizer's combined company's capital structure

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    Pfizer that bought Warner-Lambert and Pharmacia what would be the expected impact on the combined company's capital structure?

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    Pfizer Acquisition by stocks
    Stock transaction involves purchasing the company by issuance of the stock instead of cash. One can also use both to pay the consideration. In cash transactions, acquiring shareholders take on the entire risk that the expected synergy value embedded in the acquisition premium will not be achievable. In stock transactions, that risk is shared with selling shareholders. The expected net gain to the acquirer from an acquisition is the difference between the estimated value of the synergies obtained through the acquisition and the acquisition premium.
    Cash may ...

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    This discusses the Pfizer's combined company's capital structure.