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Breakingviews: Goodwill written down in cold climate

Tuesday, October 02, 2012 - 04:17

Oct. 2 - The evaporating value of goodwill could make corporate boards think harder about sanctioning future takeover deals

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In today's -- is breaking news we awesome weather of the falling value of goodwill means corporate boards will think Honda. About sanctioning take every deals in the future with the -- medicine Robert Cole it's a missing pieces are rubber arm if Hubble complicates its like -- to. I mean that the concept of good will but let me just get this right so Europe. A bunch of of good -- has created for acquisitions. Tom all of -- -- its -- acquisitions and a look and this is a lot of this is written off yet. And to the goodwill impairments. According to the latest Vegas which I should say for 2011 yeah. Is rising yet while its original -- so good guy who has created in many different ways but the love is created. Act acquisition is basically the difference between the he accepts the through quiet when that pool and the price. And you know we will talk about premiums for control and full immunity. Brand values and so on and that's quantify the time of acquisition. But hole in the bulls couldn't -- visit that valuation of these intangible assets. I'm write them down or that brought them all my life. -- what this recession thanks to -- -- let people pointing it out to us. Is that in 2011. That's the -- impairment charge across European companies to 600. Stoxx 600 companies rose five best episodes about the facts that support your jaw. Howard Jarvis through interpreter back yet. And what does this tell you what -- -- about a mentality of the board well I think it lest he suggests that a very strongly suggest that -- couldn't people who what -- companies of overpaid. For pos acquisitions well maybe we knew that already but what these really big spike in these impairment charges shows is the -- -- really. Waking up to it. Right now failed getting real. Now there are very different reasons as to why dead today that may be had just sort of catchy pop -- smelling the bike and maybe. That that recognizing. That the European economic climate is is really cold and he's got to stay cold. For a long time. Maybe that rules like clear in the text maybe that trying to say well let's get rid of although all the mess created from a a whole bunch of acquisitions that we did in 2000 -- making a fool. So that we can -- stuff again don't another shopping spree. I'm putting my company. That and it must be something else it in entirely and that is that that -- that people trying to. And get real and a move forward now I mentioned this is 2011 days. It could look entirely different things can. Think I could do that could do but I think that those separate suits the votes could -- working out of the -- economic climate. They confront your tough at the end of lost yet. Com and that turned around my authority it happened. It may it may well have done but you know we can only -- I knew the use that they too. That we have. I think another a lot of -- -- parts of the -- -- is that the way the market values of these companies seems to be below. News oh of the the accounting values as well and that seems to suggest the mock it. Things that the market is worth listening to it. Further impairment charges could come through. By the recognition of the statesman Austin could come through yet the -- a review of stress is that it within the law. -- states suggests that bold will be much more careful about. About sanctioning deals in future and that they'll recognize that you good deals have to be done the right products. And that it is too easy to persuade themselves on that cells as well I won't believe. No one is actual facts. And facts about -- cult. There's no breaking news tonight US edition every -- talk that Easton seventeen fancy. Bsc. -- -- -- --

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Breakingviews: Goodwill written down in cold climate

Tuesday, October 02, 2012 - 04:17