Data General Corp. "dgn" Message Board

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Technology Stocks : Data General Corp. "dgn"

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To: peter muckerman who wrote ()	8/25/1999 5:05:00 PM
From: Brad Patton	Read Replies (1) of 354

Does anyone know why the spread between EMC and DGN has widened? I whipped up a table to show the difference over the last couple of days. The second column is EMC's closing price the third col, is the approx. DGN price (EMC * .3262) the fourth column is the actual DGN close and last column is the spread. EMC ~DGN Actual DGN Spread 8/25 62.875 20.510 19.063 1.447 8/24 62.500 20.388 19.125 1.263 8/23 60.500 19.735 18.938 0.798 8/20 59.938 19.552 18.875 0.677 8/19 59.250 19.327 18.813 0.515 8/18 59.000 19.246 19.000 0.246 8/17 60.000 19.572 18.938 0.634 Granted this is a small sample but usually the spread will narrow over time not dramatically increase. Data General seems to hover around 19. Is there a cap in the purchase price? From the press release: "Under the terms of the agreement, EMC will issue 0.3262 of a share of EMC common stock for each share of Data General common stock, subject to certain adjustments." What are "certain adjustments"? I thought the deal was a stock for stock merger. When MCI and WorldCom merged there were different ratios used depending on WorldCom's price but this was clearly spelled out in the press release. Any thoughts?

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