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Technology Stocks : Compaq

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To: Mohan Marette who wrote (20652)3/8/1998 11:07:00 AM
From: Satish C. Shah  Read Replies (1) of 97611
 
Hello Mohan:
Thanks for the URL/news.
I am puzzled by the following in the news.

"The news could create difficulties for Compaq's proposed acquisition of Digital Equipment. While the deal's mechanics are unchanged, a decline in Compaq's stock price will make the deal more expensive."

Difficulties for whom? buyer (CPQ) or the seller (DEC)?.
But why should it make the deal more expensive? (I am comparing with Tandem deal, where they offered 0.22 shares. Here they are offering $ 30.00 + 0.945 shares.)

Just a few points to ponder with your morning coffee.
Regards,
Satish
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