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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Redman who wrote (13590)3/5/1998 12:08:00 AM
From: Chuzzlewit   of 95453
 
Greenman, it has to do with dilution, since the deal is a stock swap. Here's how you do the math: take the combined market cap of the two companies at the close of business Tuesday. Figure out how many EVI shares the WII shares will come out to when converted. Add that to the number of EVI shares to give the total number of shares. Now divide the combined market cap by the total number of shares. That will give the equilibrium price of EVI. Multiply that by .95, and that will give the equilibrium price of WII.

Regards,

Paul
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