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Technology Stocks : PMC-Sierra (PMCS) -- Ignore unavailable to you. Want to Upgrade?

To: finfan who wrote (3612)	7/14/2000 12:26:25 PM
From: SJS	Respond to of 3818

I was thinking the same thing. I don't know what the criteria for the announcment date is, or who sets the date on this, or even if the company thinks about their equity options expiration events when they do this. I wonder if the announcement would come after July expiration, next Friday. IOW, a week from this Monday, or beyond would be fine with me. Does anyone know if company executives think about options expiration when these things are announced and planned? Steve

To: finfan who wrote (3612)	7/16/2000 2:20:14 AM
From: Guy Gordon	Respond to of 3818

I don't check you're reasoning there, finfan. If they acquired company gets .389 shares now, they get .778 shares after a 2:1 split. It costs PMCS nothing.

To: finfan who wrote (3612)	7/16/2000 2:08:29 PM
From: Toby Zidle	Respond to of 3818

Once the exchange ratio is set in a straight stock-swap buyout, it no longer matters what PMCS stock does, up or down. No cash costs are involved. It costs PMCS xx.x% of the company (calculated from the number of shares outstanding) no matter what the stock does. In fact, as PMCS's stock price rises, FUTURE stock swaps become less expensive since the 'stock currency' is more valuable. However, the date the exchange ratio is set, the cost is also set. The exception is if the exchange ratio has collars. (I believe this one has no collars.) With an upper collar, if PMCS stock went above a certain price, then the exchange ratio starts to get adjusted downward, making the deal better (less costly) for PMCS. Again, for this buyout, the cost to PMCS is not dollars cash, but percent of the company value. Whatever the stock price does, the percent of value of PMCS is fixed.