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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Bosco who wrote (10259)	1/16/2001 5:49:32 PM
From: Zeev Hed	Respond to of 30051

Bosco, XIRC has about $80 MM in property and equipment, some of it could probably be "marked to market" but I doubt that the cap ex hit would be much greater than $100 MM, so most of the increase is equipment (unless INTC plans to make other acquisitions that have a large Cap-ex element) and thus about $600 MM is real growth in Cap ex. For a company that is about 15% or more than th total semi busines, a 10% increase YOY in cap-ex, is not going to alleviate the slow down in the semi-equip sector, IMHO. Zeev

To: Bosco who wrote (10259)	1/16/2001 5:50:21 PM
From: Bosco	Respond to of 30051

Hi all - just a thought about Regulation FD --- it doesn't work :)! MACR is buying ALLR, but the former has been telegraphing something afoot in the past week or so. I was lucky to get out of MACR even a couple of times. Am I paranoid :)? best, Bosco

To: Bosco who wrote (10259)	1/16/2001 7:08:37 PM
From: Logain Ablar	Read Replies (1) \| Respond to of 30051

Hi Bosco: I think we are mixing up some Tax and GAAP rules. I just remember the huge amount of cap ex on the dec acquisition but since the bulk was the foundry and related equipment that may be why. Tax rules allow an election which I'm sure INTC will make (everyone does) which would treat the purchase of stock as a purchase of assets (not to be confused with the purchase accounting treatment for gaap although if it was a purchase for gaap some of the asset #'s would be the same). This gives not only a step up in basis of the assets (assuming fmv is greater than depreciated value (hey even inventory since you want the tax write off) but also lets you set up some intangibles for write off. Once you've allocated the pp to the assets the remaining is goodwill which is non deductible (until you sell the stock). It should be a good deal for intc if the technology and talent is good.