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Technology Stocks : Pure Atria Corp(PASW) and Rational(RATL) Merger

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To: NASDBULL who wrote (31)4/10/1997 10:19:00 AM
From: seth thomas   of 147
 
OK, I'll try. The deal itself, based on the dropped stock price, is about $400MM. I am estimating that once the deal is consumated, it will cost at least $100 MM in restructuring costs and revenue that is lost in the resulting turmoil. That $100MM is in cold hard cash.

But, look at the market cap of RATL. It has dropped about $1 billion due to this fiasco. That's $1 billion the company could have raised in a secondary offering or other financial event. That's $1 billion the stockholder's have lost.

So, add the three components together, and you get $1.5 Billion, estimated.
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