Pure Atria Corp(PASW) and Rational(RATL) Merger Message Board

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

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To: Czechsinthemail who wrote (108)	4/25/1997 2:40:00 PM
From: Czechsinthemail	of 147

One other little tidbit worth considering. According to the last report, RATL is sitting on about $230 million in cash. That comes to about $5.25 per share. Because the acquisition for PASW is a stock deal there is an ultimate valuation ratio of 0.9 PASW to 1 RATL. But if Rational can pick up cheap shares of PASW on the open market with their cash at a ratio less than that, it will decrease the number of shares they will ultimately have to issue for the deal. In other words Rational can in effect buy back its own shares by purchasing Pure Atria shares and get them at discount prices. Whether they would choose to do so or not I can't say, but it's interesting to contemplate at these prices. Baird

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