Speculating in Takeover Targets Message Board

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Strategies & Market Trends : Speculating in Takeover Targets

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To: Joseph Silent who wrote (40)	7/30/2003 2:07:34 AM
From: richardred	Read Replies (1) of 7265

Joe: 1. If a tender is launched and you refuse to sell. IMO-Chances are you will be suck with some hard decisions, (THATS IF)- WCOM gets more than 90%. With your mention of someone owning close to 10%. Chances are the stock will still trade past the tender offer deadline. In my experiences, I've seen many offers extended. In this scenario you could sell shares on the open market. If enough shares aren't tendered, chances are there might be an arb, or arbs that have a big enough sake to negotiate with the company for a higher price. If this be the case, chances are the stock will go a little higher than the tender. This most likely being from the company, and arbs buying shares on the open market. Buying from shareholders like you that didn't want to tender. I think risk arbs are buying now, as the stock has been trading above 70 cents. Also, if enough shares are not tendered to consummate a merger. The company most likely will extend their offer to shareholders. The extended offer however might be sweetened to tip the scales in their favor for completion. A few notes tendered shares usually have withdrawal rights. keep yourself informed of any news (court ruling especially) IMO-The best case scenario would be for the court to deny WCOM from buying the rest. DIGX stock would most likely improve way beyond the tender offer on it's own, with some time behind it. This in light of the improvements now being seen there. Good Luck! GITY RR

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