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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?


To: SLSUSMA who wrote (36997)1/10/2000 9:57:00 PM
From: David E. Taylor  Read Replies (1) | Respond to of 41369
 
I don't see any scenario where TWX moves up while AOL moves down, unless another buyer comes in and ups the ante on the TWX purchase price. That will take deep pockets that probably only T or GE possess.

Failing another bidder, AOL and TWX move from here in tandem, with the discount (or premium depending on your point of view) reflecting the market's uncertainty that the deal will go through on the present terms.

Where the stock price winds up depends entirely on the market's valuation of the combined company, which I am sure will be a subject of debate for some time yet.

David T.



To: SLSUSMA who wrote (36997)1/10/2000 10:06:00 PM
From: tradesman  Respond to of 41369
 
Does anyone disagree with the analysis?

The logic seems sound, but, has anyone considered what it would look like if AOL splits? I'm not sure it's out of the questionl.