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Technology Stocks : COMS/USRX
COMS 0.001300.0%Nov 4 10:50 AM EST

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To: Crotty who wrote (1163)4/3/1997 9:17:00 AM
From: David Lawrence   of 1384
 
Crotty,

With all due respect, I don't think you understand. The exchange ratio is fixed - you will receive 175 shares of COMS for every 100 shares of USRX that you own. It doesn't matter what price COMS is trading for now or then - the exchange ratio remains the same.

USRX right now trades at 1.75 times COMS price (actually at a 2-4% discount). They move in tandem; if one goes up, so does the other. If COMS drops is price by 5%, so does USRX. So, for all intents and purposes, the merger is already in effect with regard to your shares.

If coms shares move north now before the deal is complete, then there will be less upside potential after the deal.

Perhaps, however, if COMS shares go up before the merger, USRX shares will go up by an equal percentage, so the gain will already be in your USRX shares.

The bottom line:

We want COMS shares to go up now and later, because as COMS goes, so goes USRX.

By the way, the discussion of COMS/USRX has moved over here:

Subject 14174
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