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Technology Stocks : BORL: Time to BUY! -- Ignore unavailable to you. Want to Upgrade?

To: Jack Gibson who wrote (7463)	11/18/1997 10:43:00 AM
From: Andre	Respond to of 10836

The timing was awful. Just when I was expecting a jump 13-14, this bomb is dropped.

To: Jack Gibson who wrote (7463)	11/18/1997 11:41:00 AM
From: Hungry Investor	Read Replies (1) \| Respond to of 10836

Jack, The accounting for this transaction is fall under the pooling of interest rules which will require the company to restate its financial statements as if the two companies had been together at all times. As VSGN has not been profitable, this will drag down the EPS (or LPS) on a historical basis. One positive note, however, is that if we over-paid for VSGN, the goodwill or other intangibles will not show up on the balance sheet and therefore not create any charges to earnings going forward. However, note that qualifying for pooling of interest treatment is difficult and there are many types of transactions that can kill this type of accounting treatment. The SEC is scrutinizing these types of transactions. Cheers and good luck, Scott.