Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (710)	9/14/1998 4:28:00 PM
From: Doug	Read Replies (1) \| Respond to of 14638

K.E.P: In a take over by pooling, the assets of the two companies are amalgamated as one entity. In doing so Accountants try to clean up the books of redundant equipment,goodwill and unsold out of date Inventory. Further S.G&A systems need to be upgraded/modified to enable improved and common usage. These cost a lot of money. There will also be the cost of laying of overlapping/redundant personnel and their golden handshakes. It is quite likely that for the next 2Q's, the resultant earnings of NTL will be negative despite a positive operating Income.