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Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?


To: Nick who wrote (5242)10/11/1999 7:24:00 PM
From: SJS  Respond to of 6846
 
Nick,

there are many creative ways to pay stockholder of the acquired company. It's up to the designers of the deal. For example,

1) It could be all cash at price X. If you own 1000 shares, and the buyout price is 63, then they give you 63,000 dollars.

2) It could be all stock at some percentage of BLS shares. For example, if it is 1.5 times the number QWST shares, then you would get 1.5 BLS shares for each QWST share. Math wise, whatever the BLS price is (let's say it's 42...) it works out to 1.5 x 42 or $63/share if it had a cash equivalent.

3) It could be cash and stock, in some form together. For example, $10 in cash, and 1.238 shares of BLS for each QWST share.

You get the drift here?

Steve