WSTL/AMTX -- The Unbeatable Combination Message Board

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Technology Stocks : WSTL/AMTX -- The Unbeatable Combination

WSTL 5.990

-0.3%

12:07 PM EST

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To: j rector who wrote (56)	10/5/1997 11:22:00 PM
From: Andrew Won	of 115

J, Before the merger announcement, I was a little concerned about Amati's cash position as well. I disagree with your view that five million is not a lot of money. I personally don't know that many people with that sort of signing authority, let alone the cojones to unilaterally advance his or her employer's five million to a financially strapped company. As for why some of Amati's partners did not advance Amati some cash, you need to keep in mind that these big companies are not banks and would not pay out this kind of dough unless their agreements called for it. It appears that the Amati/Westell merger came right down to the wire in terms of Amati's cash position. The merger was either in the works for quite some time giving Amati some comfort of not running out of money, or Amati had no other means of raising cash either through a secondary offering or a private placement and had no choice but to be acquired by Westell. Of course, this is just my educated guess. If I really knew anything, I most likely couldn't comment here. In any case, the Amati/Westell combination is a good deal for both companies. For Amati, it had to be just a question of who they eventually got acquired by and for what. I think it is very likely that the two companies will merge as soon as Stanford University consents to the assignment of Amati's licenses to Westell, BC Tel consents to the assignment of its contract, and all other contractual rights/obligations are transferred. This will enable Westell to get rid of redundant employees and offer a single integrate product line rather than two. It would be dumb to continue to offer two product lines with two sales forces, etc. . . Andy

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