TLAB info? Message Board

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Technology Stocks : TLAB info?

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To: gbh who wrote (3582)	9/9/1998 3:49:00 PM
From: Chuzzlewit	Read Replies (1) of 7342

gbh, here's how you can calculate the value of the stocks after the deal closes (all other things being equal): 1. Add the capitalized value of the two companies. Since CIEN is trading at around $20 and TLAB at around $46, this yields ($2.2 billion + $8.3 billion for a total of $10.5 billion) 2. Calculate the number of shares after the merger (180 million + .8x 108million = 266.4 million 3. Divide the answer in 1 by the answer in 2. $39.41 would be the value for TLAB 4. Multiply the value in 3 by the conversion rate to get the value of CIEN: 39.41 x .8 = $31.53 You can use this method to figure the value of stocks in any merger provided there are no synergies and assuming insignificant merger-related costs. TTFN, CTC

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