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Pastimes : Triffin's Market Diary

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To: Triffin who wrote (27)	4/26/1999 2:44:00 PM
From: Triffin	Read Replies (1) of 869

PICK: CQ @ 30 7/8 Last September 1998, LMT offered to buy CQ in a two step transaction; A cash offer of $45.50 per share for 49% to be followed by a stock tender of 1 share of LMT for the remaining 51% of CQ .. LMT is 'borrowable' at the time of this post .. The trade would be to purchase 1000 CQ @ 30 7/8 and sell short 500 LMT @ 42 or wait for LMT to rally above $45.50 and sell short 500 LMT at that time .. In the former case the return would be 30.875 to 43.75 ( 45.50 + 42.00/2 = 43.75 ) or a 41.70% actual return that should be realized prior to year-end 1999 .. Note that the present discount in this deal is 'so large' that I don't feel there is much downside even if the deal is cancelled ..

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