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

To: Paul Merriwether who wrote (503)	10/5/1999 10:31:00 AM
From: unclewest	Read Replies (2) \| Respond to of 6516

Lehman ups the target to $150<<< link please

To: Paul Merriwether who wrote (503)	10/5/1999 10:58:00 AM
From: Ritch	Read Replies (1) \| Respond to of 6516

From BancBoston Robertson Stephens: GMST: MERGING WITH TV GUIDE. REMOVES LITIGATION DOUBT. BELIEVE VERY POSITIVE STRATEGIC IMPACT. STRONG BUY - Gemstar is merging with TV Guide (TVGIA-$45.94) for 0.6573 GMST shares for each TVGIA share, which equates to a purchase price of approximately $54.97 per TVGIA share, at Friday's closing prices, a 32.3% premium. However only an approximate 7% premium, according to GMST's 180-day average closing price up until the announcement. The deal is expected to close in the second half 2000. - We believe the price paid to TVGIA is justified given the positive strategic value of the combined company. The merger should lead to quicker penetration of the GMST's EPG across all platforms, as the deal aligns Gemstar's strength in the consumer electronics market with TV Guide's strength in the cable set-top market. - As Gemstar's EPG gains critical mass, we believe the future advertising revenue stream will accelerate substantially, as the combined entity begins to leverage TVGIA's large sales force and well known brand. - We believe the deal lifts one of the major litigation clouds away from Gemstar's stock, and believe we could hear positive news concerning the GIC case in the near term. - We believe this merger will help Gemstar's EPG business rapidly grow to an installed base of 30 million in a few years. We believe this would be worth approximately $50 billion, providing upside to GMST stock. Strong Buy.