ATPX: Lunn Industries and Technical Products Group merge. Message Board

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Technology Stocks : ATPX: Lunn Industries and Technical Products Group merge.

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To: Sergio H who wrote (755)	11/7/1997 1:16:00 PM
From: Lee Bush	Read Replies (1) of 1923

Sergio: Re: Dillution on the merger. I have reviewed the S4 on Edgar and it appears that this merger is very favorable to LUNN. The bottom line is that LUNN will earn .91 per share (new) vs. .06 (old), or .60 (new), a gain of 50% on earnings. Lunn shareholders end up with 1.46 of the 3.54 mil. shares, or 41% of the company. This does not take into account the 1 mil. preferred shares transferred to the new company from TPG. Also, these figures are before possible adjustment for declining income by TPG next April in the event that TPG income falls short, a form of protection for LUNN shareholders of record prior to the merger. It appears that they are being careful concerning the granting of new shares for the investment bankers, etc. I do not presently own any LUNN shares, but am watching the behavior of the stock. Volume is low, thusfar, which I interpret as negative for the short-term performance of the stock. Lee

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