HBOC...Buy in here? Message Board

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Biotech / Medical : HBOC...Buy in here?

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To: Geoff Nunn who wrote (170)	8/11/1998 4:05:00 PM
From: Geoff Nunn	Read Replies (3) of 341

One month ago HBOC almost agreed to merge with slow growing McKesson. When news of the deal was leaked HBOC stock tanked, closing down 11.2% and losing $1.75b in market cap. I think HBOC shareholders are owed an explanation from HBOC management as to why it thought the merger - described by some on Wall Street as "bizarre", would be good for HBOC. Is anyone troubled by the fact that McCall and the board have remained mum (so far as I know) as to why they wanted the merger? We do know that at one point McCall evidently favored the deal, with opposition coming from the McKesson board. A major sticking point apparently was the length of employment contracts for some of HBOC's officials. I believe McCall's role in this affair raises serious questions about his judgment. On the face of it, he as well as the HBOC board seemed to have bought into a dumb idea (merging with McKesson). What does this say about the financial acumen and judgment of these individuals? If wasn't a dumb idea, don't they have a duty to fellow shareholders to explain why? Isn't it rather arrogant of them to roll the dice with HBOC's future, without recognizing a duty to explain and defend their actions to shareholders?

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