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Biotech / Medical : Agouron Pharmaceuticals (AGPH)

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To: Joe E. who wrote (5281)9/9/1998 4:57:00 PM
From: Vector1  Read Replies (1) of 6136
 
I have no information on a Dupont acquisition. However, the question of how the tracking stock affects a potential acquition is quite interesting. I would think it would make the deal more attractive to Dupont. Dupont would essentially be buying AGPH General which with conservative assumptions on synergies it could do for well north of $40 per share and still be accretive. Moreover they would have a built in sales force for Sustiva and a second generation version of Sustiva in development. The tracking stock would not affect Duponts earnings and would create a nice tax writeoff.
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