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Technology Stocks : Westell WSTL
WSTL 5.640+1.3%Nov 25 3:53 PM EST
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To: Lucky888 who wrote (18076)2/22/2000 9:02:00 PM
From: Rich Wolf  Read Replies (2) of 21342
 
WSTL/TLTN deal: anyone who thought the deal is not going through would have been dumping TLTN much more heavily than we've seen. I noticed that the other day the spread closed when TLTN volume was higher, today it gapped back when the volume disparity returned. Lack of shares to short eliminates the pure arbs players. Longs such as myself may not want to sell WSTL short-term to replace with TLTN. Remaining question would be, why aren't institutions picking up more WSTL instead of TLTN? Maybe their investment covenants prohibit them from taking on such 'risks' until the deal is finalized? Any guesses?

Company guidance is that the deal is not in question, in fact the initiation of the deal would indicate a desire of both boards to see it through. Majority shareholders have already 'voted' through the boards' actions.

Some 'yahoos' posited the idea that the deal could be renegotiated... but the proxies mailed out specify an up/down vote on the merger with the '3.3:1' ratio.

I expect the gap here may linger for the next month, and then close in a heartbeat. I've been buying TLTN, in order to get WSTL, and also exercising WSTL options but holding those for now (why sell when down off the high, and ready to move higher?).

All IMHO.

Regards~!
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