French companies benefiting from state aid can't buy back shares
1–10 of 220 posts
Re: French companies benefiting from state aid can't buy back shares
#2That makes sense.
But what about prioritising partial nationalisation of these companies by injecting cash in exchange for shares? That way it would have no impact on the net public debt, as the gouvernement assets increase at the same rate as the debt.
Re: French companies benefiting from state aid can't buy back shares
#3That makes sense. But what about prioritising partial nationalisation of these companies by injecting cash in exchange for shares? That way it would have no impact on the net public debt, as the gouvernement assets increase at the same rate as the debt.
They would still take away money from companies who needs it more. A company who is able to pay dividend or buy back shares has enough money to run without state support.
Re: French companies benefiting from state aid can't buy back shares
#4Prediction: that won't be a precondition in the USA, and if it was, most companies would decline the aid.
You see, buybacks are "that one weird trick" where you can steal from the market, by inflating the EPS and hence your employee stock options, and not go to jail.
Re: French companies benefiting from state aid can't buy back shares
#5I'm not from France, but is it controversial at all? If company wants state support, money needs to stay at the company, that's what it is about, right? Do companies in France could abuse this rule in other way?
Re: French companies benefiting from state aid can't buy back shares
#6Some opinions on stock buybacks worth reading:
https://hbr.org/2020/01/why-stock-buybacks-are-dangerous-for...
https://www.nytimes.com/2018/08/23/opinion/ban-stock-buyback...
Re: French companies benefiting from state aid can't buy back shares
#7Prediction: that won't be a precondition in the USA, and if it was, most companies would decline the aid. You see, buybacks are "that one weird trick" where you can steal from the market, by inflating the EPS and hence your employee stock options, and not go to jail.
To play devil's advocate here, how is that any different from increasing your dividends?
Re: French companies benefiting from state aid can't buy back shares
#8Prediction: that won't be a precondition in the USA, and if it was, most companies would decline the aid. You see, buybacks are "that one weird trick" where you can steal from the market, by inflating the EPS and hence your employee stock options, and not go to jail.
To play devil's advocate here, how is that any different from increasing your dividends?
My guess would be that it directly increases the value of stock options and unvested equity, which dividends don't. Dividends are good for people who currently hold shares, but not for people who have shares promised to them in the future.
Re: French companies benefiting from state aid can't buy back shares
#9Prediction: that won't be a precondition in the USA, and if it was, most companies would decline the aid. You see, buybacks are "that one weird trick" where you can steal from the market, by inflating the EPS and hence your employee stock options, and not go to jail.
[deleted]
Re: French companies benefiting from state aid can't buy back shares
#10Prediction: that won't be a precondition in the USA, and if it was, most companies would decline the aid. You see, buybacks are "that one weird trick" where you can steal from the market, by inflating the EPS and hence your employee stock options, and not go to jail.
So US companies will take government money intended to rescue jobs and businesses, and instead use them for some quick profit for their shareholders and executives.
I think those French conditions are entirely reasonable and sensible.