Hi Dave,
I found the following 2 statements contradicting:
(1) "SAN FRANCISCO, Feb 19 (Reuters) - Adaptec Inc said that its proposed $775 million acquisition of Symbios, a unit of Hyundai Electronics of America, will be accretive to earnings in its first year, with positive cash flow from Symbios."
biz.yahoo.com
AND
(2) Moody's may cut Adaptec Inc convertibles
"However, it will dramatically alter the company's balance sheet, which exhibited a formidable cash position of approximately $728 million as of December 31, 1997. The company has indicated that a portion of the acquisition cost will be financed, and that it will realize a write-off from the transaction, the amount of which is indeterminate at this time.
Prior to the effects of the acquisition, Adaptec's December 31, 1997 long term debt consisted solely of the $230 million convertibles, which, when added to the capitalized amount of operating lease rentals, is a reasonable 24% of total capitalization."
biz.yahoo.com
Which statement makes more sense to you?
Thanks,
Milk |
