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

To: nic who wrote (26772)	5/8/2000 1:18:00 PM
From: Nine_USA	Read Replies (1) \| 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.>> I must have been smoking something. I was wrong and not thinking clearly.

To: nic who wrote (26772)	5/8/2000 1:32:00 PM
From: George Dawson	Read Replies (2) \| Respond to of 29386

There is an incentive for traders specifically arbritragers. The recent example where this was an alleged factor was the failed TLAB and CIEN merger in 3Q 1998. You can find the details in TLAB's press archives, but the deal was initially 0.8 shares of TLAB for each share of CIEN. On the day of the announcement (8/28/98) TLAB was trading at $24.50 and CIEN at $35.12. Over the intervening weeks until the deal was called off on 9/14/98 - TLAB stayed at about the same price ($25.16) and CIEN dropped to $13.12. The final press release said the deal was terminated by mutual agreement due to the fact that TLAB shareholders would not approve the conversion due to the pressure on CIEN share price. I can't recall any material news that may have effected the share price of CIEN. On the other hand there were rumors that arbitrage activities may have been involved and the disclosure that the hedge fund LTCM had a significant money losing position in CIEN. Search for CIEN in this article: kellogg.nwu.edu Apparently the strategy is referred to as "risk arbitrage" defined as simultaneously buying stock in a company being acquired and selling stock in the acquiring company. We need some advice on this from the traders among us - especially on whether this might occur here and how a small float might impact things. George