Monday, June 4, 2007

Moody's, S&P may cut Flextronics on Selectron buy

(Reuters) - Flextronics, the No. 1 U.S. contract electronics maker,
said on Monday it will buy Solectron for $3.6 billion in cash
and stock to cut costs and expand its product line. For
details, see [ID:nN04445158]




"Flextronics' review for possible downgrade reflects the
potential for increased financial leverage to result if the
transaction closes as planned, Moody's said in a statement.
"Solectron's review for possible upgrade reflects the potential
increased scale and client diversity provided by the merger,"
the agency added.


Read more at Reuters.com Bonds News

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