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Non-Tech : Iomega Thread without Iomega -- Ignore unavailable to you. Want to Upgrade?

To: Bill Lin who wrote (269)	6/29/1998 10:09:00 PM
From: Rocky Reid	Respond to of 10072

HUGE CHARGES TO BE TAKEN IN AUGUST-AND POSSIBLY BEYOND biz.yahoo.com Iomega said it agreed to buy 53 percent, or majority control, of Nomai for about $21 million. Iomega will make a tender offer shortly for the remaining Nomai shares, paying another $20 million in cash, Sierk said. In addition, Iomega will pay $3 million to acquire technology owned by Nomai that allowed the company to produce its Iomega-compatible data storage disk products. The boards of both Nomai and Iomega have approved the deal. The purchase of the majority stake in Nomai is expected to close July 1. No shareholder approval is required, Sierk said. Sierk said his company will take an undetermined charge against earnings for the third quarter ending in August to cover some of the costs of the purchase. Iomega is going to have to eat over $40 MILLION is charges to pay for this. This is a disastor for the balance sheet.