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Technology Stocks : SDL, Inc. [Nasdaq: SDLI]

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To: 16yearcycle who wrote (3626)12/8/2000 11:14:11 PM
From: Kayaker  Read Replies (2) of 3951
 
JDSU and SDL: Getting Closer
DECEMBER 08, 2000

After months of review by the Department of Justice, analysts say a decision in the JDS Uniphase Inc. (Nasdaq: JDSU) and SDL Inc. (Nasdaq: SDLI) merger could be close at hand. Like the unending U.S. presidential election, most people feel as if they already know the outcome, but they are just waiting for the official tally.

The stock prices of the two companies have recently moved to shorten the spread between the proposed deal value and SDL’s stock price.

The agreement, which calls for trading 3.8 shares of JDSU for each share of SDLI, makes SDL worth $281 a share at JDSU's current value. SDL's stock was trading at around $270 a share, narrowing the spread between the proposed merger deal and its current value to about 4 percent. This is compared to a 21 percent difference on November 1st and 6 percent on December 1st.

UBS Warburg noted the shortening gap in a research advisory it distributed to investors earlier this week, reiterating its position that the deal will go through....

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