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Technology Stocks : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: The BayWatcher who wrote (13324)	6/29/1998 11:47:00 PM
From: getgo234	Read Replies (1) \| Respond to of 25814

IF LSI decides to finance the acquisition of Symbios with short/intermediate term debt in Japan the interest rate will likely be about 2%. ($ 760 * 2% = $ 15.2 million). Interest expense of $ 15 million for an operation that generated approx $ 105 million pre tax ( $70 million after tax) sounds appealing. The currency risk of borrowing yen equivalent to $ 750 million may not be that great ASSUMING that LSI generates a great deal of yen from its operations. Assuming the above assumptions are correct (I agree the are a lot of assumptions) Symbios could add a great deal to both LSI's pre tax and after tax income in future years. Comments please.