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Technology Stocks : WCOM

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To: P.T.Burnem who wrote (2717)6/23/1998 7:30:00 PM
From: ANANT  Read Replies (1) of 11568
 
PTB: MCI/WCOM merger

I will try to explain the relative stk prices of WCOM and MCIC at the time of closing.

100 MCIC shrs = 124.39 shrs of wcom ( 51/41 = 1.2439)

If the ave. price of WCOM in the last 20 days before the closing time is 48.00 ( assumed) , the MCIC stk price should be 48*1.2439 = 59.70.

Now wcom is at 47.937 the MCIC is 57.687 ( MCIC is lagging behind by a couple of points) as closed today.

I believe as the closing time approaches and the merger uncertainties are removed, MCIC should leap forward much more than wcom to satisfy the above factors.

I would appreciate if someone could comment on my understanding and point out any lapses. Thanx in advance.

Kind rgds

ANANT

Note: If the above analysis is correct, it may be desirable to buy MCIC now in preference to WCOM, assuming the merger goes through and WCOM is going up. If not MCIC will tank.
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