LEIX Lowrance Electronics a GPS Sleeper? Message Board

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Technology Stocks : LEIX Lowrance Electronics a GPS Sleeper?

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To: Barry Dryer who wrote (163)	3/19/1999 11:27:00 AM
From: Barry Dryer	Read Replies (2) of 186

I called Lowrance IR this morning. Here's the deal: the negotiated value for LEIX was $27.5MM. This assumes ORB is trading between $22 and $37 per share when the deal closes. Expected closing date is approximately 90 days from the date of announcement, or mid-June. The reason the initial announcement said $24.1MM was that ORB had slipped below the $22-37 band just before the deal was announced. It is now trading back within the band. The current/expected value to shareholders (per the company) is $7.40/share, so they are using slightly fewer outstanding shares than what the $7.30 in yesterday's report was based on. If ORB continues to do well and is above $37 at closing, then we would get more. It would appear that LEIX is currently trading at a 20% discount to the expected deal value, and one would think that could narrow with ORB's upward movement providing a safety factor.

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