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From: | "P Maiden" <pmaiden@xtra.co.nz> |
Date: | Sat, 18 Nov 2000 16:49:57 +1300 |
Warner - what would happen if RMG
purchased BCH?
RMG would pay in excess of $1B - most of which would be
goodwill (because of the low NTA of BCH)
In return RMG get an additional revenue stream of $50M odd
with earnings of $20M odd . The amortisation expense of $50M (if written off
over 20 years) wouldn't make RMG look good would it.
Hopefully in the cases you and Brian are talking about the
goodwill paid for any acquisition supports decent earnings (after amortisation
etc).
Just an example - but does highlight how overvalued BCH
is.
Peter
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