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Re:New Math as applied to VW purchasing Rolls Royce...

>I don't know about VWs cash reserves, but when Ford acquired Jaguar, it spent
>about 2.5 billion dollars for a company with about $640 million in fixed
>assets.  Effectively, it payed nearly 2 billion dollars for the brand name.  
>Best Wishes,
        Er, not quite.  "Fixed assets" don't include lots of things like
inventory, acct's receivable, etc.  For example, Chrylsers fixed assets are
17bln.  Total assets are 60 bln.  Also, bldgs, real estate over 30 years old
are generally fixed assets with a book value of "0" since they are
depreciated fully.  Thus, fixed assets is a poor measure of a company's value.
        However, the Ford-Jag analogy is very good.  Ford showed Jag how to
make good cars and make a profit.  VW can maybe do the same with Rolls,
though I understand German-Anglo business cultures don't mesh as well as
American-Anglo.  BMW is not having an easy road with Rover, and I bet Rolls
will be a lot tougher.

        Bryan Kamerer