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Caterpillar's Payment of a 32% Premium for the Acquisition of Bucyrus

Question 64

Multiple Choice

Caterpillar's payment of a 32% premium for the acquisition of Bucyrus in 2011 and subsequent need to issue more stock illustrates the acquisition problem of


A) integration difficulties.
B) inability to achieve synergy.
C) large or extraordinary debt.
D) managers overly focused on acquisitions.

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