America On-Line: will it survive ...? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : America On-Line: will it survive ...?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: J. P. who wrote (12259)	12/2/1998 6:20:00 PM
From: LWolf	Read Replies (1) of 13594

JP... re: AOL trading flat I heard the same comment from Bloomberg this morning. It has to do with the option arbitrage process that is taken on both companies when the agreement is made, and is not complete until the closing. I don't know the details of the transactions (someone else may be able to provide a specific definition), but I've read of it, and seen it before: when CPQ bought DEC, shortly after the announcement and agreements were signed that stocks stayed flat. Even though the purchase as stated as a percentage of the AOL stock, I believe there is an intent to not pay more than the price of the value of the stocks based on the day of the agreement. There may be some fluctuation, but I'd be surprised to see any significant rise until after the purchase is finalized.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next