How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 423.31

-1.6%

3:59 PM EST

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To: Gerald Walls who wrote (30919)	10/20/1999 1:51:00 AM
From: RoseCampion	Read Replies (2) of 74651

Not to crash the party here, but is anyone else holding (or more likely, as in my case, still holding) VSIO as a MSFT "surrogate" with a sort-of low-risk arbitrage component? The takeover is supposed to be completed by the end of the year, and the buyout ratio is supposed to be fixed in stone at .45 MFST to 1 VSIO. That would put VSIO's closing value today at about 38 7/8, which is actually 1 3/4 points (almost 5%) higher than where it actually closed, at 37 1/8. To my way of thinking, as I know both companies and have every belief that the deal will go through as planned, this seems like I'm getting to buy a deep-in-the-money MSFT call that has a negative 5% time premium built in. Does anyone else see it this way, or am I missing something obvious here? -Rose-

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