Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: LiPolymer who wrote (18017)	2/16/2000 5:50:00 PM
From: Lucky888	Respond to of 21342

WSTL/TLTN -- I have more TLTN than WSTL. I hope the merger will happen too. I just get a little puzzled as I watching the gap (between wstl/tltn price) staying the same as we approaching March. The gap should shrink significantly by now but it is not the case... I was told one reason for that is because wstl shares are hard to borrow. L.

To: LiPolymer who wrote (18017)	2/16/2000 7:47:00 PM
From: steve	Read Replies (2) \| Respond to of 21342

I spoke to the Westell CFO yesterday regarding the TLTN merger. Apparently things are progressing faster than originally forecast--which was for the merger to close at the end of March. Shareholders will receive their voting information package in the next 2 weeks and the deal is expected to close March 16th. He was not aware of any opposition to the deal from any major share holders. As you point out, the deal clearly benefits both companies and I also believe the anxieties expressed by some on this board are unfounded. I have a fairly large position in TLTN and I hedged some of this (foolishly) with short calls on WSTL. I can say from experience that is impossible to borrow WSTL shares to short. This is because Castle Creek et. al. have tied up a lot of the shares to hedge their convertible shares. My point is that the size of the arbitrage spread between TLTN/WSTL is not only because of the inherent risk(albeit minor) but also because the buy TLTN--short WSTL strategy is unavailable to close the gap. As far the hedge fund's short position goes--this may or may not be unwound before the merger. I was told that they have up till mid-April to convert their shares. So there may no opportunity to short WSTL for awhile.