First, on September 1, 2015, HeartWare announced a highly dilutive acquisition
of Valtech Cardio, Ltd., a manufacturer of medical devices used to treat heart disease which in turn revealed significant obstacles to the timely approval of MVAD.
"By doing a dilutive acquisition
we don't make our lives easier in the short term, but we are committed to our stated goals and we will manage through," chief executive officer Pascal Soriot told reporters.
"People realise mergers and acquisition (M&A) is a big part of the Oracle growth story - on the other hand, no one wants to see a big, dilutive acquisition
," said Bill Whyman, an analyst who covers the technology industry at ISI Group.
The other tenet of Neon's acquisition philosophy is never to make a dilutive acquisition
. With a high flying stock price and a further $162 million in cash to back it up, Neon can afford to take advantage of the uncertainty in the nascent EAI market space to make non-dilutive transactions.
If there's anything that separates Toller from his predecessor, however, it's his razor-sharp focus and hard eye for numbers: Focusing on core businesses in plastics additives, resins, surfactants, petroleum specialties, and silicones, Toller is a strident cash-flow advocate, who says he'd be hard-pressed to suffer a dilutive acquisition
. indeed, the two major additions under his tenure - a $600 million portfolio of European businesses from Germany's Schering AG in 1992 and OSi last year - were accretive from day one.
Dilutive acquisitions are a big no-no to Wall Street.
The investment community perceived that Delhaize and Food Lion had been manipulated by the investment bankers into overpaying in the bidding process, as well as fearing further dilutive acquisitions. Delhaize has said, with admirable candor, that it is pushing Food Lion to expand through acquisition more rapidly and will finance that acquisition if need be.
Additionally, operating profitability in fiscal 2017 was negatively affected by the five dilutive acquisitions
that were not included in the budget.