BORL: Time to BUY! Message Board

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Technology Stocks : BORL: Time to BUY!

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To: Neil Booth who wrote (7625)	11/21/1997 9:30:00 AM
From: John Solder	Read Replies (2) of 10836

My question is which number is fixed, the sale price of $150MM or the 0.89188 conversion ratio at transaction date. If the magic number is $150MM and if BORL is trading at 10 at the transaction close date then it would be an almost 1:1 stock transfer and $150MM/$10share = 15MM BORL shares to issue. If the 0.819 is the magic number and BORL closes at 8 on the transaction date then VSGN holders would get $6.5/share. Considering IPO on 8/96 2.1MM shares at $7.5 and 2nd issue on 2/97 1.6MM shares at $12.5 there will be alot of VSGN holders voting NO on a 0.189 merger. I'm sure they would rather wait for a better fixed cash offer. I know I would. The weighted average price of the two public offerings is $9.66. Granted the number of public shares is 25% of the total outstanding the boards will have a battle to get VSGN holders to go for much less than $10 share.

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