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Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?


To: Nandu who wrote (7239)6/17/1999 11:26:00 PM
From: WhySoSoon  Respond to of 13953
 
Is this good or bad for the stock price? I'm clueless....I'm sure many others are as well....

This is what I have been thinking to bring this topic out in the 1st place. There is two scenarios:
1. If the deal fails, then those who short EGRP will cover EGRP and sell TBFC immediately and simultaneously. This will push EGRP up because of the arbitrage covers.
2. If the deal succeeds, then to be at par:
a. EGRP rises and TBFC rises more than EGRP. (it is a good deal for both)
b. EGRP falls and TBFC rises. (it is bad for EGRP but good for TBFC)
c. TBFC falls and EGRP falls more than TBFC. (it is bad for both)

As a shareholder, I like to analyse the impact. The deal does take quite long to close and continue to influence the share price in some degree. Your or anyone's comments are appreciated.