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Technology Stocks : How high will Microsoft fly?
MSFT 483.03+0.5%3:59 PM EST

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To: Sir Francis Drake who wrote (43924)4/30/2000 12:22:00 AM
From: johnd  Read Replies (3) of 74651
 
Morgan,

(a) "The company would not say how many warrants expire then, but if any expire in the money, and if Microsoft pays in stock, earnings will be further diluted."

How does this work, why dilution?

(b) "But the benefit of pooling has a cost. Under accounting rules, a company making such an acquisition cannot buy back shares immediately after the deal. Microsoft's hands are tied until June 7."

How can it be June7. I read the SEC docs. They say 6 months 24 months after deal close. So how can it be June 7? The merger happened on Jan. 7 add six months, I get July 7 as the earliest date.

Let me know your answers.
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