HWP -- Hewlett Packard Message Board

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Technology Stocks : HWP -- Hewlett Packard

HPQ 26.64

+2.7%

Nov 5 3:59 PM EST

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To: BelowTheCrowd who wrote (4584)	4/25/2002 11:41:50 AM
From: Oeconomicus	Read Replies (1) of 4722

I suspect this merger will end up right up there with AOL/TWX in terms of the value that will need to be written off in the end. AOL is writing off huge amounts of goodwill that resulted from the fact that they bought TWX with inflated bubble-stock. Now that the stock is deflated, they have to take an "impairment" charge to get rid of an accounting-fiction of an asset that never should have been there in the first place. Neither the creation of the goodwill asset, nor its write-off now have anything at all to do with the operations of the business. Purchase accounting in a stock-swap deal is just plain stupid, but companies don't have a choice.

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