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.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: BigBull who wrote (62891)	3/25/2000 8:14:00 AM
From: diana g	Read Replies (1) \| Respond to of 95453

Re: VRC / TBI Deal Hi BigBull, I disagree with you, except for the part about me being "very smart" <g> I think it's a good deal all around, and that it will go through. The drop in VRC's price was mostly a result of it's very recent disproportionate run-up, which was caused largely by buy-out rumors. Imho. Look at the charts and you can see that valuations were in synch just a few weeks back. I've seen some talk about amending or killing the deal too, but I think that won't happen. Here's why: 1) Both boards like the deal. 2) Large institutional owners will be able to see the long term advantages of the deal and the reasons for the valuation ratio, and won't be in a frenzy at losing the last 10 days rumor run-up in VRC. (Quite possibly they were sounded out in advance anyway) 3) There is a large percentage of insider ownership in both companies which can be expected to vote 'Yes' --- a)At VRC, besides large positions held by current officers, directors, and such, big chunks are owned by family of the founders. This idea has likely been floated to them in advance as well. b)TBI is so closely held that I understand instead of an annual meeting, all us stockholders get together for barbecued ribs and beer at L.E. Simmons' home in his basement rec room. I'm told that if we vote 'Yes' L.E.'s going to pit-roast a steer for us and have a real blow-out party out by the pool. The vote's a shoe-in. <G> Sure, any VRC owner will grimace looking at that drop. But that's just a passing blip. I think maybe the folks who are most upset about the deal are VRC owners with a short term traders' attitude who hate to loose the gains of the last few weeks. Long term B+H folks, including institutions, will see the advantages and be pleased. ---Recalculation of the ratio won't happen because it's unnecessary to pass the deal and because it just is too much of a can of worms. The deal's fair as it stands according to both boards and to me, what else do you want? <G> All JMVVHO, of course, and as those who follow RIG know, This simple grrl has been wrong before!! regards, diana Seriously, there's virtually no risk of a 'No' vote on the TBI side, as I'm sure everyone can see.