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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Amy J who wrote (90334)	10/15/1999 7:37:00 AM
From: GVTucker	Read Replies (1) \| Respond to of 186894

Amy, RE: I'm wondering what generally happens when the price of the stock runs up before an acqusition - does the acquiring company usually need to pay for this run up? Thanks, Usually, no. The price negotiations are active very early in the discussions, and the price of the deal plus or minus 10% would be set at least a week before we see an announcement. Doesn't mean that an acquiree might try to leverage an increased price in reaction to a run up, but unless there's some other leverage out there, that won't happen. Note that the DSP deal is only about 10% above the stock price of early June. It seems like a pretty fair price, though if the couple of analysts I checked with are right in that the DSP's QCOM license will not transfer to INTC (it's not really worth my time to check), it makes the price a little rich.