News
Cisco to sell $4bn in bonds
Matt Grainger Feb 12 2009, 1:08pm
Fund raising move fuels speculation of future acquisitions
Cisco is to sell a series of bonds, expected to raise $4 billion in funds.
The move has raised speculation that it is looking to make an acquisition as it made similar preparations prior to its buyout of cable set-top box manufacturer Scientific Atlanta.
A press release from Cisco said that it would be using $500 million of the money raised to pay off a debt due this year, while the rest would be used for “general corporate purposes.”
During a quarterly conference call, Cisco’s CEO John Chambers pledged to invest aggressively to put the firm in a good position for when the economic climate improves.
“We must gain from this economic pain,” he said. “This downturn is the biggest challenge of our lifetime, but it's also the biggest opportunity for the company and the country to change our economy.”
Source: CNET
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