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Technology Stocks : Cabletron Systems (CS: NYSE) -- Ignore unavailable to you. Want to Upgrade?

To: Teflon who wrote (4175)	6/24/1998 9:49:00 AM
From: WTSherman	Read Replies (1) \| Respond to of 8358

None of this inventory stuff really makes much sense. Performing a mid-month physical inventory is unusual, to say the least. However, performing one related to an unannounced deal is really strange. Typically, negotiations would be based upon the company's inventory records and the deal would be subject to recalculation upon a physical inventory just prior to the deal closing. Doing it as part of the negotiation doesn't make any sense, from the potential buyers point of view since ANY deal like this has very solid protections built in to compensate for any variance between "book" inventory levels and "physical" inventory levels. There's no gain for the purchasing company to worry about this now...