Microsft’s $3.75billion issue sparked of a possible takeover of German corporate software maker SAP AG.
Microsoft, the world’s largest software maker has issued bonds to investors for the first time in history capitalizing on its “Triple A” rating and the weak bond market.
On Monday, the software giant issued bonds to investors at low interest rates that were only a slight premium to the US government debt and rates much lower than other corporations.
The sudden move sparkled rumours throughout saying that the giant would be preparing for a large-scale aquisition possibly of the German corporate software maker SAP AG. But that turned out to be a rumour and Microsft’s CEO Steve Ballmer on Tuesday said that the news was a random rumour.
“I have nothing to say about rumours of acquisitions, positively or negatively,” He told the eager reporters.
It strikes me as a random rumour.”
The company has been amongst the few to retain the “Triple A ” Rating. Moody’s Investor Service and Standard & Poor’s have a AAA rating on Microsoft but still Fitch rates it one notch lower at ‘AA-plus’.
SAP Co-Chief Executive Leo Apotheker, in New york declined to comment on the news.
Microsoft reportedly has cash and short-term investments worth $25.3 billion as of end of March.
