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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 71.08+0.1%Nov 7 9:30 AM EST

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To: MHA who wrote (61103)8/21/2002 11:14:31 AM
From: RetiredNow  Read Replies (2) of 77397
 
That's true. I don't know what's going on at the level of detail that insiders do. However, if you read the article carefully, you will see that Cisco DIDN'T say they were going to pay $2.5 billion. What they DID say was that there is a range of pricing possibilities from $0 all the way to $2.5 billion, if all the most optimistic sales and Cisco market cap scenarios played out. They are basing the price on a set multiple of Andiamo sales, plus other factors such as Cisco market cap.

You and OWNSTOCK are latching on to the $2.5 billion figure as if it's a done deal, but I didn't get that impression at all. I think it is extraordinarily wise to create a buyout option contract based on a range of scenarios and values. It's a very smart way to do business.
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