Pure Atria Corp(PASW) and Rational(RATL) Merger Message Board

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

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To: seth thomas who wrote (30)	4/10/1997 10:19:00 AM
From: Skeptic	of 147

On the conference calls following the announcement, both company's managements stated that they and their boards are committed to completing the deal. While they were extremely disappointed with the market reaction, its not going to break the deal. PASW's current discount indicates that people either didn't listen to management, or don't believe them. No one seems to appreciate the strength of this combination. They both have great products that are extremely complementary. There is very little overlap. Together, they form a suite of applications that addresses the entire software development process. Their cultures are also very similar. They seem to have mutual repsect for each others people and products and they are very close geographically. They did this deal in order to completely dominate the application development tools market within a couple of years. There's no other company that's even close in terms of product breadth and quality. Everyone is so focused on PASW's disappointing quarter that they are completely overlooking the potential for the combined company. It is precisely because of this potential that RATL was willing to do the deal despite PASW's current problems. Its their opinion that PASW wouldn't have agreed to the merger at a bargain price if they had waited for them to announce the bad quarter. Paul Levy of RATL was so frustrated with the market's reaction that he said he even considered taking the companies private! IMHO, this deal is going to get done and RATL is going to be a very large and successful company in a few years. RATL is a great buy, and PASW is even better with the current 20% discount.

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