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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: Jack Zahran who wrote (31326)	6/11/1999 12:50:00 PM
From: Karl Drobnic	Read Replies (2) \| Respond to of 31646

Fairness opinion: My take is that the "Fairness Opinion" will postulate that further dilutive capital raises will be necessary for TAVA to make the transition to a "post-Y2K Company". By making that argument, Prudential can say that the future growth we see for TAVA will be swallowed by debt financings or more issuance of shares. There are many protests that could be raised to this assumption (TAVA's balance sheet makes share buybacks possible; internal growth possibilites, etc.), but it will all end up a matter of conjecture, with Prudential being in the position of the "expert". And the larger the future capital raise is that Prudential postulates, the lower they make the current "fair value". If Prudential makes the "future capital raises" argument, I don't see much chance of challenging the buyout since Prudential could say, "We interviewed management, and management said that the future goals are ...etc." It will all turn into a closed loop of conjecture.