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Technology Stocks : USRX

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To: Wolverine who wrote (17629)4/24/1997 10:09:00 AM
From: Lost in New York   of 18024
 
How would you feel about the merger if the terms were sweetened from 1.75 shares of COMS to 2 or 2.25 or 2.5 of COMS for each share of USRX?

I wonder if USRX would still have to pay the penalty for backing out of the merger if it tried to renegotiate the terms of the deal.


If COMS were to consent to renegotiate the ratio, they could also agree to eliminate the penalty.

However, I don't think the ratio will change. I read somewhere that the ratio was set to avoid earnings dilution for either company. On the other hand, if there is a change in the ratio of earnings for the companies going forward,(my accounting is too rusty to know if this really makes sense) maybe something will happen, but I doubt it.

Dave
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