[einhverfr]

I mean for a deal like that, the immediate question is "why no cash?" Cash is operating capital and it requires business commitment to pay for it. Equity is an accounting entry, limited only by laws and bylaws of the organizations.

The only reasons I can think of are:

1) The stock of the purchaser is overvalued and the purchaser knows it,

2) The purchaser doesn't want to spend operating capital on the acquisition...., or

3) The purchaser doesn't have the operating capital to spend on the acquisition.....

1 and 3 seem likely in this case.