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Technology Stocks : America On-Line (AOL)

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To: robert duke who wrote (1148)1/3/1999 11:10:00 PM
From: Pat Lombardo  Read Replies (2) of 41369
 
Ok what I mean by this....
Lets say Netscape has 60 million shares
outstanding.... Now after the merger is done
Netscape stock goes away... .45 shares of
AOL stock is distributed.... So to round off
using .50 that will put an additional 30 million shares
of AOL stock out on the market....

So If AOL currently has a total of 100 million shares
now they have to add additional 30 Million from Netscape
deal and this will put 130 million shares of AOL stock in the float.

Now I dont know exactly how many shares are in the float for
AOL so I just used rounded Numbers... So if you add a split
here it doubles the shares outstanding for AOL in the float..

With all the splits AOL has had in the past 5 years I bet
100 million total shares as my example is way off....
So point is how can they increase with a split the shares
in the float and pay 4 Billion for NETSCAPE????

This is the point I am making....
When a Company is BUYING another company I have
never seen a STOCK split occur during or even after...

If you know of a Company It would suprise me...
It would blow me away thats for sure...

I hope this helps especially to all with a theory
that AOL will split NO way No how.... Unless they turn down
The Netsape Deal I would say there is a chance...
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