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Technology Stocks : Cabletron Systems (CS: NYSE)

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To: WTSherman who wrote (4176)6/24/1998 10:14:00 AM
From: Teflon  Read Replies (1) of 8358
 
Mr. GWM:

That is unless you were concerned about the reported Gross Margins in the recent earnings, substantiating reported internal controls, etc.

There could be a variety of reasons why an acquiring company would perform this, regardless of any inventory variance covenants built/to be built into a purchase/merger agreement.

Especially if the acquiring company is a foreign entity.

All, mind you, assuming that this physical inventory actually took place as reported, who knows...

Thanks,
Teflon
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