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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Nine_USA who wrote (26769)	5/8/2000 12:35:00 PM
From: Patrick Sharkey	Respond to of 29386

Floorless convertible: And then Ancor shareholder fortunes, for those continuing to hold, will rise along with current Ancor stockholders. The only ones to get hurt in this scenario, of course, are those that hold options priced around key numbers. Of course, shorts also benefit from the scenario you describe, don't they?

To: Nine_USA who wrote (26769)	5/8/2000 12:41:00 PM
From: nic	Read Replies (2) \| Respond to of 29386

Excuse me Herb, what have you been smoking? ANCR shares are converted into QLGC shares at the fixed ratio of 0.5275, end of story. No incentive for any player to manipulate anything. On the contrary, collars might have provided such an incentive - but there aren't any. - nic

To: Nine_USA who wrote (26769)	5/8/2000 12:45:00 PM
From: Greg Hull	Respond to of 29386

Herb, <<With no collar on the price, this deal resembles the floorless convertible: QLGC has incentive for its stock to decline as much as possible until the deal is done>> Am I missing something? With the ratio locked in at .5275 shares of QLGC for each share of ANCR, how does it benefit QLGC to have the price decline? Greg

To: Nine_USA who wrote (26769)	5/8/2000 12:53:00 PM
From: Bob Frasca	Read Replies (1) \| Respond to of 29386

QLGC has incentive for its stock to decline as much as possible until the deal is done. I'm afraid I don't understand this statement. The stock price has no bearing on the deal. It will still be .5275 shares of QLGC for one share of Ancor regardless of the price. It is most certainly NOT in the best interest of QLGC shareholders to see their stock price go down. What exactly is QLGC's incentive for the stock price to decline?

To: Nine_USA who wrote (26769)	5/8/2000 4:33:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 29386

Herb, not exactly a floorless. The only "advantage" QLGC would have from a lower price is taking less goodwill on their balance sheet and also recording a smaller loss if they take some part of the goodwill as "writeoffs". Frankly, weighing these "benefits" against losing a big chunk of its marker cap (which is the currency with which QLGC will have to do additional acquisitions), is not in QLGC's interest. I think that the market was looking at $1.7 B vs maybe some $50 MM plus in sales and decided to sell the stock. I am taking this opportunity to buy some QLGC right at these and lower prices when these come in. Zeev