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Non-Tech : Amati investors
AMTX 1.600-1.8%Jan 9 9:30 AM EST
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To: Schmedley who wrote (26995)10/13/1997 2:56:00 PM
From: SteveG   of 31386
 
<I suspect we'll be seeing a dramatic rise in WSTL upon completion of the deal as the ARBS rush back in to cover their short WSTL positions.>

(Just tuning back in here.)

I think the way this arbitrage works, is when the AMTX/WSTL differential is greater than about .8 to 1 (allowing the possibility of no deal), the cheaper is bought and the more expensive is sold (until .8:1 is approached). This is a riskless trade (if deal goes through) as any difference is captured when the companies merge. No need to "cover", as you are flat at completion.

Steve

And how 'bout that TXN?
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