Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 40.56

+10.2%

Nov 28 9:30 AM EST

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To: Tony Viola who wrote (124397)	1/8/2001 12:19:27 PM
From: GVTucker	Read Replies (1) of 186894

I wonder if stock valuation isn't also a factor in Intel's decision. BRCM could do this acquisition with stock and still have it be accretive. Intel is much cheaper relatively, and there would be some dilution. Granted, $1 billion wouldn't generate much dilution for Intel, but given the current disappointments in earnings, perhaps they didn't think the market environment was right. I've always been of the opinion that accretion/dilution is really an accounting exercise that should have little importance in the buy/sell decision, but time and time again corporate America has disagreed with this opinion. I have had countless absurd discussions with people trying to figure the answer to the absurd question (at least, it was absurd to me), "How much could we/they pay and still make this deal accretive?" More disappointing still to me was that the answer could have a real bearing on the acquisition price. This might be another instance.

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