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Technology Stocks : Compaq

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To: DeadHead who wrote (4041)7/14/1997 4:18:00 PM
From: Kevin A. Lynch   of 97611
 
I haven't heard any rumors of the deal not going through. I have paid careful attention to the spread of the two stocks and have noticed that Tandem is trading at or about a 90 cent discount to Compaq (in Tandem terms). I look for this difference to shrink over the next couple of months. The close today shows a discount of .745 cents per Tandem share which is near where the conversion has been lately.

Hence, if you think the deal is a cinch, you can buy Compaq shares at a $3.54 discount by buying the Tandem shares.

Regards,

Kman
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