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Technology Stocks : Pure Atria Corp(PASW) and Rational(RATL) Merger

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To: david decamp who wrote (62)4/15/1997 1:04:00 AM
From: Randy Ellingson   of 147
 
So does the little investor ever win in a situation like this? Surely since RATL said they were very comfortable with the estimates of upcoming earnings, they'll make some decent showing there. And no doubt during their report will describe their intended benefits of their pending merger so as to display optimism. And will this be enough to start to close the gap? e.g., PASW up to 10 with RATL at 14 perhaps? This would be the small fish winning for once. I'd very much like to hear a sound analysis by a qualified expert; does anybody know one?

So how often do shareholders actually vote down such a merger? Has it happened recently in a similar situation? It's almost as if the Street these days is just saying 'Forget the long term picture for merging companies-- we've got a new technique when it comes to mergers where earnings will remain unstable, unproven for a year or more...' And so they blast down the stock prices of merging tech companies whose products (unlike those of some industries?) will necessarily undergo costly transitions. In short, they say 'Why take a risk when this new challenge has been added...?'

Randy
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