S3 (A LONGER TERM PERSPECTIVE) Message Board

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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE)

SIII 0.0001000

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May 12 5:00 PM EST

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To: Bill Lin who wrote (9137)	1/30/1998 6:23:00 PM
From: JAG	Read Replies (2) of 14577

The strike price stock with respect to the convertible debt has absolutely nothing to do with a buyout of S3. I suggest you get out your accounting and finance books and study the income statement, balance sheet, and current price of both S3 and AMD. A transaction could easily be pulled off that would not be dilutive to AMD at a purchase price of about $8.00 share. I would expect some premium to this $8.00 figure however because S3 is about 10% of the market cap of AMD. Cash is not an issue because S3 would be attractive to AMD or someone else because they are long on cash. A sell of the remainder of the fab could even bring more cash. The convertible debt could be assumed because the bond holders would see this as an improvement in credit quality. The bondholders would not refuse the deal because they would want to wait out for the stock to reach $20.

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