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Technology Stocks : UMG - MediaOne Group -- Ignore unavailable to you. Want to Upgrade?

To: edwin mok who wrote (876)	8/9/1999 1:23:00 PM
From: Lance Bredvold	Read Replies (2) \| Respond to of 891

I do not understand the continuing slide in UMG price. I have bet on the arbitrage assuming that sometime in early 2000 I will receive .95 share of T plus 30.85 plus 5.70 if T's price stays at the current level or under 51.30. Since I believe this buyout will occur, the UMG price of about $70 today makes no sense to me. If all goes according to plan I should make a 20% return in the next six months. The market seems shaky, so it seems unlikely that everyone else finds that to be inadequate. Obviously, others don't believe the deal is going to go through as structured, or they believe that T's price is going to continue down (a lot--would have to be about $33.xx to equal UMG's price today). Is that what the market is saying? T will be worth $35 by the time this deal goes down? Theoretically UMG's price should be gradually increasing to its eventual takeout value as the time shortens until that happens. Not happening yet. I think I should buy more UMG, but may be missing something. Do any of you here see what I may be missing? Lance