Biotech Valuation Message Board

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Biotech / Medical : Biotech Valuation

CRSP 63.75

+4.3%

2:56 PM EDT

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To: kenhott who wrote (32875)	11/11/2009 11:19:02 PM
From: Biomaven	Read Replies (1) of 52153

(OT - BNI) You might be right about option holders not necessarily ending up with cash. The issue is an option holder typically gets the "no election" option in a merger. So if Berkshire were above the collar, then everyone who elects would take shares and the option holders would be left with cash. But if Berkshire is nowhere near the collar, then it all depends on what the electing BNI shareholders do. If they go mostly for cash, the default election might include some stock, in which case you end up having written an option on some amount of Berkshire stock. So it's a bit trickier than I had thought. I've been traveling so haven't had a chance to try to model this out in detail. Peter

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