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Technology Stocks : Cabletron Systems (CS: NYSE)
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To: Dennis Latchum who wrote (4666)8/5/1998 11:44:00 AM
From: Steve Benedict  Read Replies (2) of 8358
 
Having some experience with volume purchase agreements like the Compaq/DEC/CS agreement, I want to note that Compaq can probably end the purchase requirement by paying some sort of penalty. The exit costs would not be $3 billion.

I believe that many take the $3 billion purchase agreement with a grain of salt.

Just an observation. I am long CS having entered at 12 & 1/4.

Steve B.
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