The Learning Company (TLC) Message Board

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Technology Stocks : The Learning Company (TLC)

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To: Deep Six who wrote (6250)	3/2/1999 7:53:00 PM
From: Trader Dave	Read Replies (1) of 6318

There's not much to discuss. The price IS NOT $33 period. If mattel stays below $27.50 during the 20 day period prior to deal closing, it will be a fixed 1.2 to 1 ratio. If mattel stock is at $33 or above during the period it will be a fixed 1:1 ratio. In the middle it will be determined by using a straight average of the 10 randomly selected days out of the 20 prior to the 2nd day prior to the closing. This is in the registration statements. This introduces some arbitrage risk. If mattel stays at $26, TLC shareholders will only get the equivalent of $31.20 per share. If mattel collapses, tlc stock will go down as well, unless it is a material enough decline to break the deal. That is unlikely unless the whole market collapses. Still, there is plenty of market risk. The deal is accretive to mattel. Don't hold your breath for a 1.2 to 1 ratio. jill and company have plenty of motivation to push mattel stock as high as possible to reduce the ratio. You can bet there will be plenty of new things to discuss when the road show begins in March. Closing date is not set at this point. "Smucks" is spelled Schmucks.

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