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Technology Stocks : WCOM -- Ignore unavailable to you. Want to Upgrade?


To: P.T.Burnem who wrote (5763)1/21/2000 2:24:00 PM
From: MGV  Read Replies (1) | Respond to of 11568
 
I think I do. Its arbitrage based on the collar in place for the deal. The lower bound of the collar is $40. At the lower bound, Sprint shareholders get more WCOM. There is an incentive to buy FON and simultaneously sell WCOM - at least until the WCOM price gets to $40. If it were to fall significantly below that, both FON and WCOM would lose.



To: P.T.Burnem who wrote (5763)1/21/2000 4:16:00 PM
From: SecularBull  Read Replies (1) | Respond to of 11568
 
I suspect that there is some rotation within telecom by the institutions away from the mega carriers towards companies like LVLT or cable concerns. WCOM is unfairly maligned in that argument.

LoF