Charlie: I'm reposting your message with word wrap. Hope you don't mind.
ECI/PAIR deal could be very true IMO. PAIR is a STRONG takeover buy!
I read very carefully the "Bogus Report" (now removed by Bloomberg) and Bloomberg's own clarification (see below). It seems to me is news leak. Here is why:
(1) The "fake" link "http://204.238.155.37/biz2/headlines/topfin.html" with the news was later removed by Bloomberg. Why Bloomberg can remove it? Did they have the access to the fake link? (Yes!) I did check the link one level above: "http://204.238.155.37/biz2/headlines/", which in fact did point to a Bloomberg's own page-not-found message. IMO, this Angelfire free page site could be Bloomberg's own pre-announcement working site. When the page was leaked, Bloomberg must cover itself since the news is not official yet.
(2) Read Bloomberg official clarification again. It really means the news could be true. (Quote: ''We have not announced an agreement with ECI,'' said Charles McBrayer, PairGain's chief financial officer...)
And because "ECI offices in Petah Tikva, Israel, were closed today for the Passover holiday.", that is why the news should be out tomorrow instead of today.
(3) The "fake" news is in fact professionally written. A cash transation of $1.35 bil is not in conflict with "includes the equity purchase price as well as a technology development incentive plan". IMO, this could be $1 bil cash for equity and $350 mil for R&D boost. Very good deal indeed!
In summary, I believe the unofficial news is indeed true and is a leak. What ECI/PAIR/Bloomberg will do after this leak is anonther question. The official news should be out very soon, if not tomorrow.
Happy investing.
Charlie
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Hot Stocks
Wed, 07 Apr 1999, 1:29pm EDT
PairGain Shares Rise on Bogus Report ECI Telecom Buying Company
Tustin, California, April 7 (Bloomberg) -- PairGain Technologies Inc. shares rose as much as 31 percent after a bogus report on the Internet said the phone-equipment maker agreed to be acquired by Israel's ECI Telecom Ltd. ''We have not announced an agreement with ECI,'' said Charles McBrayer, PairGain's chief financial officer, denying the report. ''We have not announced a thing.'' ECI offices in Petah Tikva, Israel, were closed today for the Passover holiday.
The story, which was posted on a message board operated by Yahoo! Inc., said ECI would buy Tustin, California-based PairGain for about $1.35 billion in cash and other compensation. The story was identified as coming from Bloomberg News. Bloomberg News didn't write the story.
PairGain rose 1 to 9 1/2 in midday trading of 8.7 million shares. Earlier, the shares touched 11 1/8. ECI's U.S. shares fell 1/2 to 35 3/4.
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