GNET should call off the merger.
When it is phrased that way, my initial reaction is to say no, we should continue with it since the damage is already done.
But then I look, as you have, at GNET's fundamentals and think that somehow we're letting ourselves get screwed on the equity side. That 1.8 shares we're supposed to receive would have equated to $86/share had INSP held its own. But it didn't and now we seeing something on the order of .9/shares of INSP at their July 26th value. Some had suggested that had we held out longer, we would have not received 1.8 shares, but something like 1.2 shares instead.
However, in that case, we would have stock that would more strongly supported by the market (of course, in this current market anything could happen).
I really don't know how to vote anymore. I like the synergies, and the idea that GNET content will be available via wireless. But then I wonder whether wireless technology is ready for complex content yet. I certainly know that downloading SI messages or news on a cell phone just ain't gonna cut it. Not with the technology and small screens they currently have on these phones.
I'll probably just have to suck it up and vote yes, though it pains me to do so at this price. Besides, given that most shareholders don't bother to vote their proxies anyway, the odds are that the deal will not be contested and will pass.
All I know is that Jain and Russell need to charm the pants off of these institutional investors next week and MAKE THEM UNDERSTAND what we already know about GNET tremendous value and potential. And then detail how that value will add value to INSP's existing services.
Regards,
Ron |
