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Technology Stocks : Newbridge Networks
NN 13.69-2.5%Dec 2 3:59 PM EST

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To: Michael M who wrote (17860)3/7/2000 7:18:00 PM
From: Rob Riordan  Read Replies (2) of 18016
 
The simple truth is that the spread between what NN should be trading at (based on the closing value of ALA and the terms of the deal) and what it is trading at represents the "risk premium" that a buyer of NN is assuming. This "risk premium" will go down as the deal gets closer to reality. If you believe the deal will go through, buying NN is a good way to get ALA at a discount. Rob

As an aside, I followed the Ascend/Cascade deal and the Ascend/LU deal very closely. In both cases I bought the about-to-be-acquired stock and did very well on the ensuing appreciation. I suspect NN/ALA willl be no different.
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