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Technology Stocks : Identix (IDNX)

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To: David who wrote (12433)	2/10/1999 6:06:00 PM
From: David	Read Replies (1) of 26039

IDT is very locked in. According to today's information, IDX has essentially co-signed IDT's bank loan of $1.5M. Under the purchase agreement, IDT is not allowed to borrow further, dispose or mortgage assets (other than sell inventory); may not incur extraordinary lease expenses or contract changes; must avoid significant new employee expenses; can't make financial moves; must clear patent activity with IDX; and can't entertain third party bids for the company except as required by Delaware law. I checked the IDX chart against the deal chronology provided. IDX was trading at about $5.25 on the day this deal got to the handshake stage, so I don't think week to week stock price changes are going to matter that much. The chronology also shows that IDX made two previous offers to buy IDT before they reached a deal. It looks like IDT wouldn't sell before the Compaq deal was reached and they could get a better price, but that is between the lines, not in them directly. Towards the very end, an amendment shows that this deal had been anticipated to close by March 31, based on a deadline performance date. Now the deadline is April 30. I don't think the merger will be final until April.

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