Morningstar: aandeel in de kijker is eBay Inc (8/7/2014)

EBay has some room to fund share repurchases with additional debt.

We view eBay's cash repatriation positively from a credit perspective, in light of its new share-repurchase authorization. In January, eBay added $5 billion to its sharerepurchase authorization, bringing the total to $5.6 billion. Given shareholder activist involvement in the company, there was concern that eBay would issue debt to fund share repurchases, perhaps to the detriment of its credit rating. In our view, the cash repatriation diminishes, although does not eliminate, this risk. Management said the cash would be used for U.S. acquisitions and share repurchases. Smaller, bolt-on acquisitions in the few hundred million range are a potential, but larger acquisitions such as Mercadolibre or Square (around $4.0 billion and $2.0 billion, respectively) may also be considered. A larger acquisition could lead to a debt issuance to save some dry powder for share repurchases and other investments. Still, eBay's leverage is below 1 times, and we believe the firm has at least $1 billion in additional debt capacity within its current rating.

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