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Technology Stocks : Digital Equipment Corp. (DEC)
DEC 12.46+0.2%Jan 16 3:59 PM EST

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To: William L. Vu who wrote (2819)1/26/1998 5:21:00 PM
From: hossein hosseini  Read Replies (1) of 3276
 
All: Watch the Arbs (Arbitrageurs) before deciding what to do with the stock. In the past I have seen that the Arbs. usually (not always) short the hell out of the acquiring company (in this case CPQ) and will buy the other side (DEC). The logic is that in case another offer is presented (white knight) or the deal is not as attractive as originally thought, CPQ has to up the price thus issuing more shares and lower price so they benefit from their short position on CPQ and long position on DEC. Just thought I share this with you.

As to the merger price? What do you expect from Mr. Palmer? Time & again he has proven to only care about himself.

On a brighter note, think if CPQ could buy DEC at such a bargain, we are in good hands. A management team that know their financials. I would rather see them take DEC to the next level than Mr. Palmer. One thing is for sure, they will not (hope not) tolerate the relax attitude of DEC management.

As for voting "no", sure but it does not make a difference. The big boys (funds,etc.) are already happy. I think they all acquired shares below $50 and made enough to move to the next game.

We shall see,

Good luck to all,
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