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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: TobagoJack who wrote (7352)8/17/2001 11:49:31 PM
From: Mark Adams  Read Replies (1) of 74559
 
A repeat analysis, substituting VoiceStream and Deutsche Telekom?

Was reading today, in the Financial Times, that DT was upset with the post upgrade sale of stock by a well known bank (on behalf of a client) as Americans will already be pressuring the stock as they apparently can't hold DT stock.

Since I probably muddled the explanation, here is a portion of the actual story;

While DT insiders said there was no formal agreement, they said it was understood that the banks would not put pressure on the share price ahead of the anticipated "flow-back" of shares from VoiceStream investors in the US who could not hold foreign shares.

globalarchive.ft.com
additional detail/slant
globalarchive.ft.com

re the Chrysler/Daimler experience- appreciate your efforts to unravel this.

The stock for stock aspect does muddy the waters a bit- yet without going back to check history, I suspect Chrysler holders got Daimler stock at a premium to Chrysler's trading price at the time of the merger, at what in retrospect may have been the peak in the profit cycle for US automakers.

So perhaps even if the fortunate 'globules of desire' held onto their newly minted shares, they may still be better off than their benefactors. Holding half of something worth something, rather than all of something worth little if not nothing. To the extent this is true, there was a wealth transfer resulting from the merger. Even if some of this wealth ended up in money heaven.
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