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Technology Stocks : Platinum Technology
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To: David C. Burns who wrote (4109)5/21/1999 3:24:00 PM
From: EL KABONG!!!  Read Replies (1) of 4148
 
David,

Is it a legal issue?

Yes... It is legal and procedural. The Department of Justice (DOJ) must approve the merger (antitrust concerns and other legalities). DOJ has requested that CA (and PLAT) provide them (DOJ) with additional information so that DOJ can render an informed opinion and regulatory approval.

My opinion is that, by now, all of the original requested information has been supplied to the DOJ, and PLAT/CA are awaiting the "verdict". However, the tender offer cannot be consummated until after DOJ has completed their work. Of course it's always possible that DOJ has requested more information and we're still waiting for all requests to be answered.

or is there some commercial value to CA to acquire additional shares above the needed minimum by tendering versus after the merger?

The answer is two-fold. First, it is more efficient for CA to buy out all of the outstanding PLAT shares through the tender offer. Secondly, it's kind of like an airline overbooking flights where they get as many seats sold as they can to ensure that the plane doesn't leave with empty seats... Only in this case, CA wants as many shares in their pocket as possible in the event that some stockholders may have withdrawn their shares after an initial tender.

KJC
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