The Thread Formerly Known as No Rest For The Wicked Message Board

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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked

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To: Patricia who wrote (60308)	9/16/1999 2:22:00 PM
From: Ed K	Read Replies (2) of 90042

Patricia: It depends whether the deal is for stock or a cash tender offer. Both the ALA and GEC-Marconi deals were cash tender offers because neither company had suitable US stock and it isn't legal to buy-out/merge using stock if the stock you get back isn't USA stuff. In both of these cases the stock opened about $1 below the cash offer, went briefly above the offer (the shorts are coming), then fell to about $1.5 below, then gradually closed over the 4-6 week offer period to 0. For ASND, this was a stock deal, and the first day "premium" was only a couple of bucks. LU dropped dramatically and the stock settled into a range that begun about $8/share below the 0.825*LU offer and slowly closed to $0 on June 25. This represented the uncertainty that the deal would be turned down by the shareholders or the Justice Dept as well as the presumed cost-of-money discounted cost for the arbitragers. Tim seems to have tipped his hand. It looks like he is expecting a tender offer. Ed K.

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