From THE HINDU group of publications
Sunday, July 29, 2001
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From THE HINDU group of publications Sunday, July 29, 2001 |
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Hidden liabilities
Krishnan Thiagarajan
As a harsh reminder of the downside to acquisition, in the high profile acquisition of SeraNova Inc by Silverline Technologies, the former may have to pay a tax liability of $60-$65 million to its former parent, Intelligroup Inc.
The New Jersey-based SeraNova Inc had been spun off from the Intelligroup Inc in July 2000 and merged into Silverline Technologies' US subsidiary, Silverline Acquisition Corp in an all-stock deal valued at $39.2 million in March 2001. Obviously future acquirers will have to tread with caution.
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Section : Industry Previous : M&As: Tread with caution Stocks | Bonds & FDs | Mutual Funds | Industry | Markets | Personal Finance | Opinion | Indicators | Copyrights © 2001 The Hindu Business Line Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line |