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Technology Stocks : Mattson Technology
MTSN 3.6000.0%May 12 5:00 PM EST

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To: creddell who wrote (3245)1/10/2001 2:16:43 AM
From: ELH1006  Read Replies (2) of 3661
 
Creddell, don't be concerned about the goodwill numbers as they will be very small, especially when compared to the original estimates. Remember that when this merger was contemplated, Mtsn was trading around $35. The merger was completed when Mtsn was in the 10's, therefore some $25 per share has been eliminated from the goodwill account. This is one of the great aspects of the merger as it did away with the majority of the goodwill account. Goodwill arises when the value of the shares exchanged plus liabilities assumed in the new entity, exceed the total of: 1)current assets plus the fair market value of the fixed assets (not book value but fmv)of the acquired companies. If Mtsn had paid the additional cash amount as original specified (but waived as I understand it) this amount would have been added to the value of the exchanged shares or about $5-6 per share.

Eddie
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