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Technology Stocks : Aware, Inc. - Hot or cold IPO?
AWRE 2.495+9.0%Nov 7 9:30 AM EST

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To: Scrapps who wrote (3157)4/1/1998 9:18:00 PM
From: dougjn  Read Replies (1) of 9236
 
Pooling allows the acquiror to avoid having to write off the premium portion of the acquisiton price against earnings over a period of time.

Purchase accounting (the other binary alternative in acquisitions) requires the reverse. Writeoff of goodwill (i.e. premium of acquisition price over book value) over a period of time. Depresses earnings per share, the life blood of stock valuation, for years.

Doug
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