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Gold/Mining/Energy : Canadian Technology issues

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To: Spiney who wrote (105)12/25/1995 4:41:00 PM
From: Thomas DeGagne   of 640
 
An acquisition of WordPerfect would be a risky but interesting move for Corel. It would put them head to head with Microsoft in the suite market and that may be scaring people off the stock. I agree Corel may sell off and stay low for some time if they buy WP. The purchase terms would be important. An all stock transaction could be a significant dilution.

However, the upside could be huge if Corel can make WP profitable. There would be strong synergy between the WordPerfect/Venutra and Draw/PerfectChart(?) products. Corel would probably differentiate their suite from Microsoft by emphasizing graphics and desktop publishing instead of spreadsheets and databases. I expect they would also follow their traditional strategy of bundling everything together on a few CD-ROMs and trying to grab market share. This means going head to head with MS on price, which won't be easy.

All in all it would be a risky but potentially very rewarding merger. I'm going to wait and see how things end up. Corel could be a real bargin if there is a sell off.

Whats your opinion on a merger?

PS: Ottawa Magazine's December cover has a picture of Corel CEO Michael Cowpland's wife in a skin tight satin santa clause suit. WOW!!! 40-24-36 It must be tough be filthy rich.
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