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Technology Stocks : Digital Equipment Corp. (DEC)
DEC 14.60+2.0%Nov 21 9:30 AM EST

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To: Sonny McWilliams who wrote (2821)1/26/1998 7:27:00 PM
From: stock bull  Read Replies (1) of 3276
 
<<Stock Bull. I went thru several deals like this. You will get 30 cash plus 0.945 shares of CPQ, no matter where CPQ trades when the deal goes through. At least as of today.>>

Sonny, you are correct, thats exactly what we will get. However, what will be the price of CPQ's stock on the date we are given the stock? If, and I am saying if, CPQ's stock drops to $15/share, the deal to DEC's investors is than $45/share, not the $60/share that was discussed on all the TV Financial Shows today. Of course, if CPQ's stock were to rise, we would get more than the $60/share. I assume the stock's price to DEC's shareholders will be the closing price on the day this deal closes.

So, until the deal closes, we don't know what we will receive...unless we sell before the deal closes.

Please let me know if you agree or disagree.

Stock Bull
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