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

To: Ibexx who wrote (92954)	11/22/1999 3:49:00 PM
From: Gerald Walls	Read Replies (1) \| Respond to of 186894

John Chambers made it clear that CSCO would not acquire any companies of any significant size, preferably not a public-traded company either. One of the advantages of only taking over privately-held companies is that there's no arbitrage that comes into play. Arbitragers, as you know, will short the acquirer and go long the acquired to lock in the takeover premium in a nearly risk-free transaction. This can trigger a sell off in the acquirer's stock if certain technical levels happen to be broken while they're putting on these plays. By avoiding these plays Cisco avoids putting artificial road blocks in the way of its stock price.