BelalM

As you numbered it:
1. You are essentially increasing risk of equity stakeholders because you are allocating a larger amount of cash flow to debt holders, and therefore would require a higher return.
2. All defensive and anti-takeover mechanisms would deter an investor from acquiring a particular company and therefore would increase the cost of the transaction. Post-offer mechanisms would typically cost more than Pre-offer mechanisms.
3. EPS bootstrapping effect. Economic value does not increase, despite the accretion in EPS because operating cash flows do not fundamentally change unless synergies are realized by the firm.
4. Cost of equity is higher than cost of debt. As such, even if earnings yield is higher than the cost of debt, that does not particularly mean that the earnings yield is higher than the required return on equity.
5. Because of the smoothing effect on the dividend yield. You are actually tagging on the increase in dividends to the long-term (i.e., 3 years in this case) payout ratio target. Because of the increase in earnings, the payout ratio temporarily dips as it tries to catch up to the target over the time horizon being contemplated.