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Technology Stocks : PairGain Technologies

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To: Bill who wrote (25483)8/22/1998 11:00:00 AM
From: Gary Korn  Read Replies (4) of 36349
 
Do you know what the premium was on DSC?

Going back to the DSC thread, I see that before the announcement, people were posting prices of about 17 1/2 (too bad SI, in its stock summary at the bottom of a post, doesn't retain the share price for the day that a post is posted).

Anyway, the last price shown for DSC is 29 5/16. Now, I don't know if this was a pooling of interest deal or not (though, given that Alacatel is French, that may not be allowed for them).

Assuming it wasn't a pooling deal (where the stocks of both companies move with the market, distorting the analysis), the premium for the ALA/DSC deal would be 29.25 - 17 1/2 = 11.75, which is about 67%. (Quite close to your own guesstimate).

Gary Korn
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