TLAB info? Message Board

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Technology Stocks : TLAB info?

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To: dougjn who wrote (2123)	2/13/1998 11:19:00 PM
From: jhild	Read Replies (1) of 7342

Well, I would look at it like their is no law that says you can't become engaged before your divorce is finalized. So long as the merger agreement itself doesn't consummate any pooling of interest, prior to the blackout, then I can't see a good reason to interpret it as constraining an agreement prior to the end of the blackout. As the horizon comes closer it is reasonable to expect that LU won't feel constrained by the blackout. As a practical matter, who is really going to enforce this blackout, and prevent this transaction if LU wants to go ahead. With the current run up we are looking at a market cap right now of nearly 11B plus a premie of 30-35%, easily the 14B number you are talking. Looking at the combined share price seems a dicey exercise because most LU fundamental ratios seem to me so stratospheric at this point. As a shareholder I would only be happy with all cash from LU. Their debt load is fairly substantial, but I don't think that LU would want to pay with anything other than stock. I wouldn't if I were them. I believe that the rumor is just that - with enough truth to give it legs until option time.

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