PSFT - 1999: The "Make-It-or-Break-It" Year? Message Board

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Technology Stocks : PSFT - 1999: The "Make-It-or-Break-It" Year?

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Oct 29 5:00 PM EST

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To: Michael Burry who wrote (327)	3/27/1999 7:15:00 PM
From: Chuzzlewit	Read Replies (1) of 1274

Michael, I believe you are incorrect. So far as I know there is no legal impediment to the merger on a pooling of interests basis, but more important, the only real advantage to a pooling based merger is the avoidance of capital gains taxes for PSFT shareholders who are showing a profit (the exchange of shares is a tax-free transaction). Amortized goodwill charges which result from the difference between the purchase price and the marked to market net asset value are accounting illusions. There is no impact on corporate taxes, and hence no impact on cash flow. See the following post regarding one-time charges under pooling rules: exchange2000.com TTFN, CTC

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