PSIX up 26.5%, Takeover(?) Message Board

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Technology Stocks : PSIX up 26.5%, Takeover(?)

PSIX 59.46

-2.7%

Dec 5 9:30 AM EST

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To: Chris Alexander who wrote (109)	5/31/1996 2:30:00 AM
From: ajcmr	of 5650

Chris what is your logic ehind this $54 takeover priceif !!! Just because it is an even billion, does not make it a maximum price! I believe you should look at even numbered stock swaps as possible buyout prices. If the takeover is performed by Bell Atlantic you should take a look at BEL's current shre price --> $62. You could see a two for one stock swap at around $32. I doubt that a one for one coul occur at BEL's current levels. Granted some would argue a fractional stock swap is possible, this however rarely occurs in high level mergers. I think that if PSInet is taken in the currentmarket, you should see them go in the high twenties to low 30's. Daniel, even you should realize that if serious buyout rumours start occuring again...youbetter cover your short. I think we can see PSInet go at a price above 500 million. The buyer will gain customers, infrastructure and most importantly KNOWHOW. This is crucial. PSInet has a mass of knowhow of the Internet Industry. Any company lacking this realizes the benefit of having a workforce that is knowledgeable in their field. In most of these internet-comm buyouts the most important valuation tools are knowhow and customer base. The knowhow can come at any price. Remember this...it could go for a billion. The bears out there are not looking deep enough. The heads of the comm's know that KNOWHOW is hard to come buy...and they will pay any price. This is not just a software product..ie. Word Perfect (800 mil)..the knowhow is worth more... Bullish on PSInet...these levels remain well below possible buyout levels. SECRETARIAT LOVES PSInet!!!!

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