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Technology Stocks : 3DFX

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To: Sun Tzu who wrote (12446)5/11/1999 4:30:00 PM
From: benwood  Read Replies (1) of 16960
 
- Did not put a collar on stock price for the merger
>Disagree; this is a bargaining item and how do you know that they didn't try?

-How do you know that they did?

I don't. My point is none of us on this forum knows one way or the other. Remember, it was your opinion that it was a management mistake; my reply points out that neither you nor I have any idea what was negotiated. You don't like the result, but you don't know what give-and-take was involved. Sure, in hindsight, it would have helped if the collar were low enough. Or perhaps it would have pissed off many STBI stockholders or been a weak enough agreement that another competing offer could have been tendered for STBI.

- Announced the merger with STB without considering the TNT inventory at STB or their existing contracts with CREAF and DIMD

>How do you know how they did or did not consider this?

-Again, how do you know that they did?

I never said I knew anything; rather, my contention is that not only don't you know (as you implied) but that none of us knows, since we weren't there (excluding TDFX insiders who are lurking).

I suspect your suggesting -- "there should have been time to get rid of most of the merchandise at a minor discount before a "delayed" announcement of the merger" -- would have been illegal (i.e. a secret merger agreement giving them time to blindside the competition). Even if not outright illegal, I suspect nVidia would have caught on to the sudden change in buying patterns or the cancellation of orders.
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