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Biotech / Medical : Biotechnology Value Fund, L.P. -- Ignore unavailable to you. Want to Upgrade?

To: aknahow who wrote (746)	6/22/1999 12:55:00 PM
From: scaram(o)uche	Read Replies (1) \| Respond to of 4974

George: Those positions weren't open market purchases. They were blocks of the company, negotiated "pre-target" with the target, under terms beneficial to the target. Rick

To: aknahow who wrote (746)	6/22/1999 3:09:00 PM
From: RCMac	Read Replies (1) \| Respond to of 4974

[off-topic] George, I don't think we are in serious disagreement here. My point is that, often, the managers of a potential target/merger partner/munchee react badly to non-token purchases by a potential muncher/etc. prior to discussions with the prospective munchee. For this reason, potential acquirers are well advised to be cautious in making such purchases. You've pointed to a couple of instances where my generalization didn't apply. Not much difference there. Probably also, the negative reactions to such purchases are likely to be stronger (a) where the potential munchee's managers are the founders or at least major builders of the business with stockholdings that both are the largest in the target and represent the lion's share of the managers' net worth (i.e., the entrepreneur(s), not the later "professional managers"), and (b) to the extent that the managers are perceived as easily replaceable (the builders of many relatively low tech businesses, for example). Your examples are from the other, lower-tension end of this spectrum, I believe; and in any event, not everyone reacts the same way as the managers DAK and I were remembering when we made our general statements. But all this has moved a bit off-topic, and I propose to leave this alone after this. -- Bob