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Technology Stocks : How high will Microsoft fly?
MSFT 423.31-1.6%Feb 2 3:59 PM EST

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To: RoseCampion who wrote (30920)10/20/1999 2:21:00 AM
From: Dwight E. Karlsen  Read Replies (1) of 74651
 
Rose, I don't think you're missing anything. If the deal closes, you will get the exact premium for VSIO that the deal specifies.

I closely followed the price action of USRX (U.S. Robotics) for months after COMS (3Com) bought them out. There were many times that there was a similar gap. As the time neared for the consumation of the deal, the gap closed.

The gap is caused by m&a arbitragers on wall street. The gap represents the risk that the deal will fall through. Should that happen, VSIO would in theory fall, assuming there had been a premium paid for the VSIO stock.
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