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Technology Stocks : BORL: Time to BUY!

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To: PCSS who wrote (7454)11/18/1997 9:31:00 AM
From: Neil Booth  Read Replies (1) of 10836
 
Well, If you believe this deal is going to work, there's an arbitrage here.

Suppose you own 1,000 BORL. Sell today for (say) 11 3/4 and buy 1000 / 0.81988 = 1220 VSGN shares at (say) 7 1/4.

Net proceeds = $2,905, and if the deal goes through, you end up with your 1,000 Borland shares again.

Any comments? The prices above are those indicated at the open.

Neil.
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