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The overall slide in technology shares became severe, meanwhile, spurred in part by higher-than-expected inflation numbers, interest rate fears, Microsoft's antitrust woes and concerns about inflated valuations.
In an interview, the appraiser, Mark S. Wallace, said all appraisals were matters of opinion, and that he frequently resisted entreaties by lenders who wanted inflated valuations.
Analysts tend to scowl at acquisitions at times like this, when oil prices are near a peak, because they worry about inflated valuations.
All that cash has also inflated valuations of fledgling businesses, making it harder for VC funds to turn a profit on them.
Though telecommunications companies are not alone in relying on options to protect against swings in share prices, they stand out because they used the options to finance so many acquisitions at what now appear to be inflated valuations.
Experts estimate that fraud is at play in at least 20percentt of all loans that end up in foreclosure; inflated valuations are rampant, experts say, and appraisal trade groups say the system needs to be overhauled.
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DailyDealWorks even lets you start your own Groupon clone (inflated valuation not included).
The flood of new money, some investors and technology executives say, is inflating valuations and disrupting the way new Web start-ups have long been nurtured.
"Looking beyond the offering transaction, the bankers clearly feel the limited volume of shares in the private market is inflating valuations of these businesses to the point that they have concerns that a bubble may be developing," Lee Duran, a partner at BDO USA said.
Next: don't use crazy bidders to inflate valuations.
As we inflate valuations, your work, my dear CEO, becomes much harder.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com