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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (81507)	6/7/2000 10:42:00 PM
From: Spekulatius	Respond to of 132070

Mike, I definitely agree with your evaluation and maybe a takeover will really happen, but in my opinion, nobody will pay more than 2$/share. At the current market valuation, CNC is still worth 2B$ and a possible buyer has to have pretty deep pockets in order to absorb the losses. The insurance industry is still under enormous margin pressure and the rising interest rates put additional pressure on the financial weak companies. More likely, CNC has to sell the profitable chunks of its business and the remaining cadaver will have to go bankrupt. This looks like Reliance all over again on a 5 times bigger scale.