Wednesday, September 29, 2010

Wal-Mart Looks To The Long-Term

Give Wal-Mart (NYSE:WMT) credit, in a financial world obsessed with short-term rewards, this massive retailer is not afraid to make long-term investments. While investors will almost certainly continue to pay much more attention to its expansion in China, Brazil and India, Wal-Mart's proposed acquisition of South Africa's Massmart could pay dividends over the long run. 

The Details of the Deal
There is no finalized deal between the two companies, but Wal-Mart is proposing to pay about $4.2 billion for this retailer. That represents about a 10% premium for a company that had long been trading on expectations of a bid from foreign operators. In fact, Massmart's stock was trading a bit higher than Wal-Mart's proposed price - suggesting that investors expect some sort of higher bid to materialize. 



Please click on the link below for the full article:
http://stocks.investopedia.com/stock-analysis/2010/Wal-Mart-Looks-To-The-Long-Term-WMT-WMMVY-KFT-GIS-UL-TGT0929.aspx

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