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Technology Stocks : SDL, Inc. [Nasdaq: SDLI]
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To: Wyätt Gwyön who wrote (2179)7/10/2000 8:20:31 PM
From: PLeaps  Read Replies (1) of 3951
 
A friend of mine in the equity arbitrage business sees quite a bit of skepticsm about the deal. Guys who do this for a living annualize the returns that the deals, if consumated will return. JDSU/SDLI is about 40% annual. If the deal was considered likely to go through the percentage would be somewhere under 10%. Obviously one only has to look at the price of both stocks to determine that there is a healthy dose of skepticsm built in.

As a layman, JDSU would not enter into such a complex and expensive deal without knowing beforehand that the deal would go through. OR they are extremely smart and knowing that the deal wouldn't pass the DOJ test, they intentionally built in the billion dollar payment from SDLI, if it falls through (assuming that the language forces SDLI to pay if DOJ nixes the thang.)
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