Digital Equipment Corp. (DEC) Message Board

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Technology Stocks : Digital Equipment Corp. (DEC)

DEC 15.14

-1.7%

3:59 PM EST

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To: George Dvorsky who wrote (2834)	1/27/1998 6:18:00 AM
From: hl	Read Replies (3) of 3276

DEC is still trading at a discount to the CPQ offer, which makes this stock more attractive to buy than a direct investment in CPQ. I personally bought DEC yesterday here in Germany the moment when I saw the unconfirmed takeover news on the ticker (that was at 6:15 am eastern time). At this point of time the DEC quote was only at around 48-50 $, so I hope that I have snapped up some shares at this price. CPQ itself seems not overvalued at this levels; I was considering buying CPQ stock, but now DEC offers a great opportunity to invest in CPQ. I was also involved in the Tandem takeover back in july and I must say that all investors who bought Tandem instead of CPQ a month before the merger closed made a good return (this was an all stock deal, and CPQ was trading 25 % higher on a pre split basis than today). The other fact that make this deal interesting is the possibility of another bidder. DEC has no poison pill and is a cash rich company (especially after the ALPHA-sale to INTC), and a possible buyer can also raise 1-2 billion $ through a AltaVista IPO. In my opinion this company is bidable and after the MCI-takeover fight last year, I think no one can say that a company with a high market cap can't attract other suitors. Last year we have seen some takeovers in this sector of the computer industry (Tandem, Amdahl), so there aren't many attractive companies left. The only names that come in my mind are UIS (I am sure they will be taken over this year) and perhaps SGI. My personal advise is: buy DEC even at this price and wait for another offer. Kai

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