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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: quasimodo who wrote (17476)	7/30/2003 10:33:10 PM
From: rjm2	Read Replies (2) \| Respond to of 79043

My friend responds... "This guy doesn't know what he's talking about. Pooling of interests accounting isn't even ALLOWED anymore. There is ABSOLUTELY POSITIVELY going to be negative goodwill in the acquisition. That's got to be accounted for SOMEHOW. Either BONT writes down EBSC's assets......or it records a huge GAIN if it's going to record EBSC's assets at historical cost. Since BONT is paying cash, the purchase price is $80 million, anyway you slice it. The question is how do you allocate an $80 million cost to over $200 million worth of net assets (i.e. equity). The guy on SI doesn't know what he's talking about. " Me ? Im not ashamed to admit I dont know.