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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: AlienTech who wrote (2985)	7/30/1998 3:19:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 6021

You are right on the cost impact in this case, but I think Geoff was making a more general comment comparing the two methods. There are important accounting differences. For example, the premium paid over book value will be accounted for as goodwill, and will be amortized over time. Bear in mind that NETA didn't buy CYBER for its management. It was purchased for its product and potential synergies with NETA's products. The fact that cash was used is really another tip off that this isn't one of those old boy network deals where existing management gets to continue mismanaging the company. TTFN, CTC