Concentric Network Corporation (CNCX) Message Board

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Technology Stocks : Concentric Network Corporation (CNCX)

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To: Dale Stempson who wrote (360)	1/10/2000 10:40:00 AM
From: Scrapps	Read Replies (1) of 377

Help me here, I don't understand why we're not trading near $45..... NEXTLINK COMMUNICATIONS INC (78-1/2, prior to open) said it would buy CONCENTRIC NETWORK CORP (30, prior to open) for about $2.9 bln in stock to expand its offerings beyond voice services. Concentric shareholders will receive $45 in Nextlink stock for each share, subject to a collar, Nextlink said in a statement. That represents a 50% premium to Concentric's stock price. Under the deal, if Nextlink shares rise above $90.91 a share, Concentric shareholders will receive 0.495 share of Nextlink stock for each Concentric share. If Nextlink stock falls below $69.23, Concentric shareholders will receive 0.65 share of Nextlink. It says we're to get $45 worth of Nextlink stock for each share of CNCX. As I see it the collar is the conversion factors of .495 should Nextlink go above $90.91 and .65 should Nextlink fall below $69.23, which still gives us $45 per share between those prices. So Why are we still trading below $40. Duh.

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