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Technology Stocks : Newbridge Networks
NN 14.21+1.7%Nov 28 9:30 AM EST
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To: t.o.d who wrote (16948)2/10/2000 3:41:00 PM
From: James Calladine  Read Replies (1) of 18016
 
ALA, ETC:

Just as a matter of interest, the standard arbitrage play
in a typical acquisition is to short the shares of the acquirer and buy the shares of the company being acquired.

Possibly a good chunk of current buying is accounted for
by this play.

Then, when the acquirer is known, they put on massive short
positions.

There are many more sublteties than this, but maybe you would want to do the same.

Of course, sometimes the shares of the acquirer go UP, so
the time of putting on the short has to be chosen well.

Best wishes,
Jim
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