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Technology Stocks : PairGain Technologies

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To: Gary Korn who wrote (25488)8/22/1998 2:16:00 PM
From: Rainmaker  Read Replies (1) of 36349
 
Question #2 - THE MONEY QUESTION

Takeover numbers speculated range between 22 and 28, with some folks guestimating over 30. The 22 to 28 numbers are reasonable, but do you think this includes what I call the "Cash Stub"? Currently, PAIR has about $200M in cash. By the time a deal is announced later this summer or towards the end of the year, this number will hover close to $230M - $250M. This stub alone has a $3 - $4 per share value. Do you think this will be on top of the sale premium, or included in the 22 - 28 range?
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