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Technology Stocks : BORL: Time to BUY!

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To: Neil Booth who wrote (7636)11/21/1997 10:48:00 AM
From: i-node   of 10836
 
It all depends on what you mean as dilution; i.e. what you're taking as a percentage of what. I reckon 100% ownership -> 50% ownership is 50% dilution and not 100%, so I'd call it about 24%.

Dilution, by any sensible definition, must take into account the effect on earnings per share -- which, of course, is comprised both of the outstanding shares (or average shares outstanding) and the actual earnings for the period. For it to be meaningful, you'd have to consider Borland's eps AFTER the transaction. So the degree of dilution will be determined by the combined earnings, increased or decreased by the synergistic effects of the transaction. It would be pretty tough to make a real estimate of the degree of dilution at this time......
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