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Technology Stocks : Wind River going up, up, up!
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To: Ramsey Su who wrote (219)8/20/1996 6:05:00 PM
From: Allen Benn   of 10309
 
>Wouldn't it make sense for WIND, INTS and MWAR be acquired?

>I remember there were some discussion a while back on that subject. Are you aware of poison pill >provisions?

I think WIND would be an attractive candidate for acquisition by a company like MSFT, ORCL or even NOVL. The huge amount of cash in the war chest, coupled with their positive cash flow, and expectation for huge gains in cash flow, make this more likely than it would be otherwise - as long as the takeover is friendly. The poison pill, which I believe was enacted at the last stockholder meeting, should discourage unfriendly attempts. I don’t recall the precise provisions of the pill, other than additional shares of preferred stock can be issued to existing stockholders in the event of an unfriendly accumulation of shares.

INTS and MWAR might also look enticing for a takeover, but not as attractive as WIND. Why? WIND has more cash, and is a major pure play in Embedded Systems. INTS is being fleshed out as we speak by acquisitions, making the company more difficult to value now from the outside. MWAR has to prove itself in wireless and digital TV, unless a would-be buyer is already a major player in those sectors and simply needs the capability.

WIND’s favorable cash situation with an attractive stock valuation also means that WIND is well positioned to acquire enhancing capability. While an acquisition of WIND is always possible, acquisitions by WIND are virtual certainties. Can you tell by recent news articles and press releases who might be the acquisition candidates?

Allen
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