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Technology Stocks : America On-Line (AOL)

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To: Pat Lombardo who wrote (1184)1/4/1999 12:30:00 AM
From: Cowboy  Read Replies (1) of 41369
 
Reply Pat...

>What will happen if AOL stock splits before the Netscape merger closes?

>If AOL effects another stock split before completion of the Netscape merger, the exchange ratio will be adjusted to represent equivalent value. For example, if AOL were to undergo another 2-for-1 stock split, the exchange ratio for the Netscape merger would automatically become 0.90.

home.netscape.com

I don't quite understand your rationale. For example, you write... since NSCP trades at a slight discount to AOL... therefore AOL will test 90-180... but not break 180??? How does NSCP trading at a 2-3% discount effect whether or not AOL will split... If institutional investors are buying and holding into a pool of set shares... supply is decreased on those shares... Correct? Retail and institutional demand is clearly increasing to purchase AOL shares... It seems logical.. price should increase as a result of increased demand.. decreased supply... fueled by dead shorts - fantastic JAN 27th earnings - cable access acquisition or alliance deal likely TBA soon... Netscape PR machine goes into effect next week... My point, anything over 180 is split territory....

More importantly, can you buy me dinner if AOL does split?

cowboy
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