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Technology Stocks : DSC Communications
DIGI 0.00010000.0%Jun 3 1:06 PM EST

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To: Steve Fancy who wrote (4362)7/7/1998 1:13:00 PM
From: Dave Chanoux  Read Replies (1) of 4429
 
DSC continues to follow Alcatel up. You must be close to the point of celebration of sorts.

The conversion discount (my terminology for the difference between DSC price and .815 Alcatel price) has been slowly shrinking and is now about 8%. As we get closer in time to closing this transaction, the discount should disappear as long as all goes according to plan.

If the plan is aborted for any reason and DSC cast loose, there may be other acquirers waiting.

The downside from here is if Alcatel turns into an anchor instead of a helicopter and descends back into the mid-thirties. Buy a put for protection anyone???

Regards,

Dave Chanoux

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