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Technology Stocks : Gemstar Intl (GMST) -- Ignore unavailable to you. Want to Upgrade?

To: Jack Jackson who wrote (484)	10/4/1999 5:58:00 PM
From: Zirdu	Read Replies (2) \| Respond to of 6516

I don't know that we can conclude that "Wall Street" doesn't like this deal. Prior to merger announcement, as of last Friday, the market caps of GMST and TVGIA were 8.363 and 6.317 billion, respectively, for a total of 14.68 billion. At today's close the market caps were 7.619 and 6.988 billion, for a total of 14.61 billion. So yes, the market is saying that the value of the company's combined is less than the value apart, but only slightly. And does that make sense? Isn't the value of these two companies combined into one, where they don't compete and of course settle all litigation between themselves, greater than the sum of the parts? I would say that initial reaction on Wall Street has gotten it wrong on this merger.