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

To: JM who wrote (3140)	8/7/1998 9:10:00 AM
From: ANANT	Read Replies (2) \| Respond to of 11568

JM: I am not a CPA. Let me think aloud. As I recall the bus. combo of MCI/WCOM is by "purchase Method"" as opposed to "Pooling of Interests" as WCOM could not use that approach as BTY happened to be a minority share holder of MCI with 20% or above of MCI. Pooling of Interests is preferred to Purchase Method as the entire purchase cost can be charged to the income in the quarter of the closing of merger and future earnings will not be affected by the merger. But now since the purchasing method is used the goodwill ( difference between the fair value - book value of MCI) should be amortized over a number of years - will have effect on future earnings. I would like to see a maximum charge is taken right away and less good will charged to the future earnings. There will be some negotiation with SEC as to the nature of these charges. I would expect some type of short term pain we may have in the performance of the stk. I would think this might have been priced already in the stock. The successful subscription of bond sale will have a positive effect. I would like to see some CPA explain us some of the details. kind rgds ANANT