FSII - The Worst is Over? Message Board

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Technology Stocks : FSII - The Worst is Over?

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To: rairden who wrote (2387)	1/24/1999 2:14:00 PM
From: David G. Pung	Read Replies (1) of 2754

I have spotted this before in other acquisitions....especially this past year with telecommunication equipment manufacture,TLAB purchasing CCSC and CIEN. The lesson learned is that there is a risk during that period of executing the deal. Even though it has been publicly announced about the intentions, the execution of the deal has yet to be completed. I too, saw a spread in the TLAB - CCSC merger and bought CCSC. My goal was to end up with TLAB shares. That went through fine and I bought TLAB at a discount. Now a couple months later there was a big differential between TLAB and CIEN. I was going to do the same thing. For some reason though, I bought TLAB directly. Thank God, I bought TLAB directly and not through the hopes of an acquisition differential. If you look at the history of CIEN you will see how close a deal can come to being complete and yet fail in the last hour. CIEN fell from a high of 90 to 8 over a couple month period. TLAB has recovered nicely. The bottom line is the differential is the risk for the time margin of execution.

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