Is this absolutely the most ridiculous thing I have heard today. Google is to borrow $3billion. Its ridiculous because they have about $100/share in cash. (Their problem is having too much of it, now they are borrowing more!)
I understand the concept of taking advantage of low rates, but this only works when the company is optimizing their cash position. Google is not optimizing their position. With this offering they should also issue a buy-back. The ROI from the shares will dwarf the 1-3% cost of the borrowed cash.
With respect to company size and cash position, Google, Apple and other in similar positions, need to take their play book from IBM.
The inefficiency borderlines comical, if not tragic.