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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: tony sidhu who wrote (2037)	9/22/1999 7:55:00 AM
From: mark	Respond to of 15615

Risk arbitrage here is the possibility that the deal won't go thru and that's the reason for the difference in the stock prices. If it didn't go thru, the longs of Frontier would still sell ( stock price goes down w/o the gblx protection) and have to cover their shorts on gblx (stock price goes up). The difference in the price is the risk premium that investors are asking for to be compensated for this (remote) possibility. We'll know for sure tomorrow after the vote. Long Fro!

To: tony sidhu who wrote (2037)	9/22/1999 2:46:00 PM
From: Madharry	Read Replies (1) \| Respond to of 15615

I think that depends Tony. We may have different strategies in place. Some people may be short GBLX and long FRO now. when they receive the shares of GBLX instead of FRO that will close out their position. Some people may only be long FRO and do not like the deal, or only hold it as part of the S&P 500. as soon as they get their GBLX shares they will sell it. Some people like myself only own FRO as a proxy for GBLX. We will not be buying or selling GBLX in the near future.