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Technology Stocks : America On-Line (AOL)

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To: yellowfintuna who wrote (38602)2/9/2000 9:06:00 AM
From: Rascal  Read Replies (2) of 41369
 
I read yesterday that (the arbitrage) differential between aol and twx stock price implies there will be a another bidder for twx. How does this affect the aol stock price?

If GE (or somebody) bids more for TWX what does that do to AOL?

Aol can up the bid for twx ...result..aol stock price down.

Aol does not up the bid.. and has to pay huge break-up fee to TWX..result aol stock price down.

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