SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?


To: RGrey who wrote (16421)8/28/1998 8:44:00 AM
From: Sawtooth  Read Replies (1) | Respond to of 77400
 
<<What is this pooling of interests coming "online" in October?>>

Basically, "pooling of interests" is an accounting method whereby the two joining entities merge their businesses together, via equity exchange, and go forward.

Contrasted to "cash acquisition" where cash is paid to acquire a company. One downside here is "goodwill" is eliminated from the acquired company's balance sheet, causing a hit to the net income of the acquirer.

As a spin-off, Lucent is restricted from using the "pooling" method, using it's stock as it's acquisition currency, until Oct., 1998. (the discussion was a side-topic re:Lucent.)

Good luck today!