Caterpillar's payment of a 32 percent premium for the acquisition of Bucyrus in 2011 and subsequent need to issue more stock illustrates the acquisition problem of:

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Caterpillar's need to issue more stock in order to pay for the acquisition of Bucyrus indicates that the company had taken on large or extraordinary debt in the process. This is an example of the acquisition problem of overpaying, which can lead to financial issues and a strain on the acquiring company's resources.

Caterpillar's Payment of a 32 Percent Premium for the Acquisition