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Biotech / Medical : ARIAD Pharmaceuticals -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (725)	10/12/1999 11:03:00 AM
From: LLCF	Read Replies (1) \| Respond to of 4474

<I should emphasize again that the 5% restriction is meaningless - they don't exercise and hold, they sell and then exercise. They never even reach 1%.> Correct me if I'm wrong.. but I think I heard of situations where a stock was beaten down to like .30 and the convert took 1/2 the company or something... my point is this can't happen here. My nightmare scenario was a 1/8 trade during tax selling and they took 40 million shares. I believe there are people who would do that if they could, you may be right and they don't, I don't know these people. DAK

To: Biomaven who wrote (725)	10/12/1999 11:11:00 AM
From: LLCF	Read Replies (1) \| Respond to of 4474

Peter, how much did these guys pay for the Convert??? If they take they're 10 million bucks here [exercise the whole wad tonight] and sell the hell out of the stock today [plus what they're already short] and just walk maybe they're happy and GONE. Only 1.3 million so far today... they HAVE to pound the stock here right?????? DAK

To: Biomaven who wrote (725)	10/12/1999 3:56:00 PM
From: scaram(o)uche	Read Replies (1) \| Respond to of 4474

"They sell and then exercise" Not really certain that I understand this.... if I short 5K shares in one account and buy 5K shares in a second account, how many shares do I own? 5K shares, correct? Someone else owns the 5K shares that I shorted? See what I'm trying to understand? From my [limited and naive] perspective, they'd own what they exercise. Please tell me where my logic is screwed up. Thanks. Makes a big difference in how one approaches this, in terms of timing, as it would appear that they could only exercise about 1.2 million first round (simplified thinking, exercise ----> sell in all or none ownership lumps)? Now..... if I were Berger and I had this toxic out there...... I'd collect a whole bunch of good news..... then, I'd force the conversion with the release of a little bit of it. average of the four lowest closing bid prices for the common stock during the 22 trading days preceding the date of conversion. So, the conversion will certainly be finished in 18 trading days. What are the dynamics that lead to this settling in at 1 1/8? It looks like we'll have a company that, by the end of the year, will have $1.50/share cash and ARGENT. Thanks for any additional thoughts.