SI
SI
discoversearch

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.
Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?


To: LPS5 who wrote (9498)7/13/2000 11:37:54 AM
From: gaj  Respond to of 18137
 
one other thing...check out JDSU and SDLI.

JDSU is going to acquire SDLI for 3.8 shares of it. however, SDLI is trading at (about) 3.25 shares of JDSU

that reflects - oh, i don't know, a ton of other factors. the most common one is the 'risk' involved that the deal doesn't happen...



To: LPS5 who wrote (9498)7/13/2000 3:42:23 PM
From: Dustin  Read Replies (1) | Respond to of 18137
 
I don't know much about the subject either, but I have been under the impression that there is often a discount to the takeover price because of the possibility of the deal falling through. A risk premium if you will. As the deal gets closer to being finalized, the market price will approach the deal price. Is this correct?