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Non-Tech : GT Bicycles (GTBX)

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To: Jeffrey Green who wrote (96)7/16/1998 6:39:00 PM
From: Steven Hsu  Read Replies (1) of 99
 
The current 7-1/4 price reflects the fact that the deal could for some reason not go through. Occassionally, a takeover stock will be priced at above the deal price if there is strong expectation that other bidders for the company will come along, but the GTBX situation is more typical. As far as whether you should wait for 8 or go for 7-1/4, it depends whether the risk that the deal may fall through is too much for the 3/4 extra.
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