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Technology Stocks : 3DFX

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To: Obewon who wrote (12127)4/29/1999 2:53:00 PM
From: Michael G. Potter  Read Replies (1) of 16960
 
Some of the items can be reserved for as a part of the merger (I need to read an EITF release or two on the employee costs, somewhat tricky, need to see if there's "future" benefit). APB16 allows for expenses directly related to the merger (proxies, investment bank fees, etc.) to be included as part of the purchase price.

The in-process R&D write-off is pretty low, seems reasonable. I'll have tocheck your goodwill calculation, seems a little low for some reason but they may have assigned a bunch of it to the "intangibles".

Writing the goodwill from the acquisition off over 5 years seems low, but I like the 5 years for technology companies. 40 years is the usual number of years used.

I'm planning on doing an analysis this week-end as soon as the merger is announced complete.

Michael
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