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

To: George A. Roberts who wrote (35695)	1/27/2000 2:11:00 PM
From: BWAC	Read Replies (2) \| Respond to of 36349

re: Poison Pills They don't work. They don't work for management. They don't work for shareholders. Example: VLSI. A well thought of semiconductor company whose leaders allowed the stock to fall to $7. (WITH $6.50 IN CASH and a book value of $12). October of 1998. I personally called the CFO and begged him to do something with the cash. Buy the stock in. You are going to lose this company if you don't. Response: No need to be a hero and spend our cash right now. Poison Pill in place. Flash forward 3 months. Hostile offer from Philips for $17 cash brought directly to the shareholders. Come to find out they had been negotiating with management for months. Management says Poison Pill time, Philips says we are going to request a vote to throw the current Board of Directors out and rescind the pill after we control the BOD. UUHOH!!! Checkmate. Stockholders think a.) back to $7 or b.) side with Philips. Weakened management negotiates with Philips for $21. Result: VLSI was sold out at what in hindsight was very low. Right at the inflection point for the upturn of this current semiconductor cycle. Frankly I am surprised the very same scenario hasn't happened with PAIR. And am more convinced with each passing quarter that it will eventually happen.