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Dilutive Acquisition
(redirected from Dilutive Acquisitions)

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Dilutive Acquisition
An acquisition that reduces a publicly-traded company's earnings per share. A dilutive acquisition occurs when the price-earnings ratio of the acquiring firm is less than that of the target firm. A dilutive acquisition usually results in a lower share price for the target company. See also: Accretive acquisition.


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Wachovia noted several other possible risks to Amgen's growth potential in the next three to five years, including domestic pricing pressure from Johnson and Johnson, European patent expirations, dilutive acquisitions and Medicare reimbursement changes for injectable drugs.
Dilutive acquisitions are a big no-no to Wall Street.
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