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 (109)	4/25/1997 7:27:00 PM
From: Randy Ellingson	of 147

That's pretty interesting. It would be a good confidence-builder if RATL were buying many shares of PASW now. Would this be public information, and if so, when? Both companies got a good bounce up today, but there's a long way to go for most shareholders of either company (and lots of time to get there). Does anybody think RATL at 15 by the merger is too hopeful? I guess it's really impossible to say given there'll be a couple more earnings reports along the way. Randy >>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.<<

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