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Technology Stocks : Wind River going up, up, up!
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To: John B. Dillon who wrote (6526)10/21/1999 11:39:00 PM
From: Mark Brophy   of 10309
 
It's like the Phoenix-Award merger.

It's good in the long run, but bad in the short run. A lot of that new stock will be dumped, so I expect the Wind River stock price to descend for about 6 months. As new features and products are developed, the old redundancy will be eliminated. I've been wondering for the past 2 years why Wind River refuses to use their high stock price to buy ISI and Microware.

There are 43,795 shares of Wind River and 23,266 shares of ISI, so the former ISI shareholders will own 33% of the new company. Some of the options are underwater, so the percentage should be slightly higher. The book value of Wind River is 163,168 and the BV of ISI is 101,896. So, ISI is contributing 38% of the shareholder value.

The deal seems fair to me, but I think we're going to see a lot of howling on this thread in the next 6 months. Also, as in the PTEC-AWRD deal, expect the DOJ to extend the waiting period 3 or more times. That will fuel unjustified speculation that the deal is falling apart.
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