COMSAT Message Board - Msg: 6037892

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Technology Stocks : COMSAT

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To: Daniel Shaffer who wrote ()	10/16/1998 1:49:00 AM
From: HIA	Read Replies (1) of 55

The stock is trading at $35...the cash tender from Lockheed is $45.50...and the stock swap of 1/2 share of Lockheed for 1 share of Comsat would be about $54 at today's price... Now Lockheed must have 1/3 of the shares tendered to the cash offer for the deal to stand...but surely there are enough institutional investors to cover that requirement... The first tender deadline is November 24...If shareholder and regulatory approval is not ready by that deadline...then another forward deadline will be created...So there is going to be a constant trading of shares being tendered and un-tendered...a market all to itself... Now...do you put up your shares for the cash tender?...or do you wait for the stock swap?...I think its each to their own...but there is less risk in taking the cash tender...while the stock swap would be a better return and it would be tax-free...but there would a longer wait and more uncertainty for the stock swap...and the cash tender would be tax-free in a retirement account...(Just the very basics...)... So if in doubt...consider tendering half of your shares...and holding the other half... Can someone buy Comsat right now and participate in the merger? Yes...you just won't be in on the merger vote...and a 29% return in 30 to 90 days for phase I is very good... (This is a test post...)...

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