Air Products' Hostile Bid for Airgas Could Be a Slugfest

With equity valuations still way off their highs from a few years ago, global companies have lots of opportunities to buy rivals as a way to boost revenues. It's also getting easier to raise financing, as seen when Kraft Foods (KFT) and Berkshire Hathaway (BRK.A) recently raised $17.5 billion in debt for acquisitions. This was the case even though the equity and debt markets were getting jitters over sovereign risk concerns.

But among the companies that are the target of these acquisitions, the sentiment is much more skeptical. Why sell at a discount? As a result, buyers may have no choice but to go hostile. This was the case with Kraft's $18.5 billion acquisition of Cadbury.