S3 (A LONGER TERM PERSPECTIVE) Message Board

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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE)

SIII 0.0001000

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May 12 5:00 PM EST

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To: stock talk who wrote (13409)	7/20/1999 10:04:00 AM
From: SBHX	Read Replies (1) of 14577

Well, if you believe in DIMD as a good asset, then the dilution is not an issue. If you have doubts, then it is dilutative. There could be middle grounds, S3 could issue 10M new shares, buy 8.2M of existing shares, and that might be better. Or S3 could issue all 18.2M new. There's lots of middle ground scenerios, of which all 18.2M being new shares is the least stock-holder friendly. I don't think it would be dilutative under either scenario. My view is your picking up DIMD and 600 million in sales which would more than off set any dilutative effect, if any. In fact I would see it as being accretive regardless of which method is chosen. By your logic, it wouldn't make sense for S3 to buy LU if it meant they have to issue another 1000 shares?

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