IFMX - Investment Discussion Message Board

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Technology Stocks : IFMX - Investment Discussion

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To: Guru Gus who wrote (14577)	4/25/2001 12:00:12 AM
From: M. Charles Swope	Read Replies (1) of 14631

"$1 Bn divided by 280 M shares outstanding = $3.57. What am I missing?" Is it possible that the litigation between IBM and IFMX might have been a factor? If the $1 billion is a fire sale price (I don't know whether it is or not), IFMX's settling for it might be because IBM's suit has some merit and/or the cost of defending against it was seen as so high that the easiest thing was to sell to IBM for the $1 billion. In other words, add to the $1 billion dollars in cash the liability and/or litigation cost avoided by IFMX to get to the true value of the deal. Just my speculation. Charlie

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