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Cash No Longer King as Buyers Use Stock to Fund Takeovers

Big deals are back. To fund them, buyers are using a little creative thinking and a lot of common stock to fuel the best quarter for global takeovers since 2007.

As they agreed to more than $900 billion of purchases in the second quarter, acquirers turned to their rising stock prices to finance deals. For buyers with public listings, all-cash offers made up about one-third of the takeovers announced in the second quarter, data compiled by Bloomberg show. A year earlier, all-cash bids accounted for two-thirds of deals, and in the five years through 2013 they averaged 50 percent, the data show.