USRX Message Board - Msg: 1253894

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Technology Stocks : USRX

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To: jmac who wrote (17596)	4/23/1997 5:08:00 PM
From: Sawtooth	of 18024

jmac: Yes, USRX can pay a significant penalty to back out of the merger if they want to. I think it is likely 3Com would bring some sort of action against USRX if that occured. Remember, this is a merger agreed to between the two co.'s; this is not a hostile takeover. I don't believe todays earnings numbers are any surprise to the insiders; Cowell likely knew how earnings would roll out back when the merger was being designed. In any corporation I am familiar with, the big boys at the co. know how the numbers are shaping up on a day-to-day basis. Can shareholders sue? Yes, you can bring suit for virtually anything. If shareholders think they have a chance of being successful and think that the costs of defense to be incurred by USRX (less any insurance coverage for this type of action against the company), along with the previously agreed upon backout penalty, is a good use of shareholder and corporate assets they may want to consider it. I'm long both COMS and USRX. Have I lost some $$$ to-date? (Yes.) Do I think in the long run the merger is a great idea? (Yes.) If I change my mind, I'll sell the stock and buy something I like better. Good luck with your decision.

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