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

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To: Philip H. Lee who wrote (85)4/18/1997 3:53:00 PM
From: david decamp   of 147
 
Philip,

I would say that the drop in RATL and rise in PASW today is
a POSITIVE indicator that the merger will take place. Arbitrageurs
short the buyer and buy the buyee. I was much more concerned
when RATL was rising back up to 15 a few days ago, and PASW
was dropping (i.e. the exact behaviour you would expect in the
prices if people believed that RATL would back out of the deal).

Now, I am even more confident that it will go through. And RATL
has already said publicly that they are comfortable with estimates
this quarter (they report next week).

Dave
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