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Technology Stocks : Nortel Networks (NT)
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To: Sector Investor who wrote (10971)7/2/2001 5:09:12 PM
From: Ian@SI  Read Replies (2) of 14638
 
What $19B.

It was goodwill, not money in the bank. Good will was never money in the bank. Rather they used an inflated currency (their own stock at prices in excess of $100 Cdn) to pay an inflated price for promising technology.
The writedown of the good will simply adjusts the purchase price to the value of today's currency while ensuring that NT will get a much reduced tax bill for many years to come. ... like close to forever.

From a tax perspective, this looks like an absolutely brilliant move. ;^)
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