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Description:  International Business Machines Corp. Chief Executive Officer Sam Palmisano, seeking to boost earnings by focusing on software and services, said he plans to spend $20 billion on acquisitions in the next five years.

Source: Bloomberg.com
 
Date: 05/12/2010

Link: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aRqLcBIcjkcE

Questions for discussion:

  • What is the significance of IBM’s announcement?
  • Why are acquisitions an important part of the strategic growth plans for IBM?
  • How will these acquisitions likely be financed by the firm?
  • From an investors point of view, is this good news?

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