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To: BWAC who wrote (35795)2/9/2000 8:25:00 AM
From: Greg Thornton  Respond to of 36349
 
Most of the value of the ME division is in their IP, not in hardware, so the deal will have very little negative impact on their book value.

They are also losing some recurring costs with the deal such as high salaries and stock options for the IC designers -- I did not account for that, either! They may even be leasing some existing space to GlobeSpan for a while.

Greg