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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: Winston Lee who wrote (11534)	7/20/2000 1:34:03 AM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 24042

You don't know what you're talking about. (Hint: Over the next few days, it will become apparent why Strauss was willing to pay so much for SDLI. The cat's out of the bag.)

To: Winston Lee who wrote (11534)	7/20/2000 2:06:28 AM
From: pat mudge	Read Replies (1) \| Respond to of 24042

However, if the merger is rejected, then I expect JDSU to soar and SDLI to plummet to pre-merger levels i.e., about $300/share. In that case, you win from both JDSU long and SDLI short and make a killing of a lifetime. Keep in mind SDL must pay $1 billion if they back out and the only scenario I could imagine causing that to happen would be a better offer. If someone else were to take over SDL, where would JDS get the advanced products they've made it clear they need? Not only would they lose the products, they'd lose them to a more heavily financed competitor, either GLW or a spin-off from NT, LU, or ALA. Those who make a lot of noise about who would be hurt more were the merger to fall out should do a little more research on what exactly is involved. Truth is JDSU needs SDLI for its advanced technologies and SDLI needs JDSU for its manufacturing capabilities and ability to integrate products quickly. I submit JDSU has fewer alternatives than SDLI. I was an early investor in JDS Fitel before it was taken over by Uniphase and have held SDL since the fall of '98, so know both companies fairly well. Pat

To: Winston Lee who wrote (11534)	7/20/2000 7:08:58 AM
From: t2	Read Replies (1) \| Respond to of 24042

Only time will tell but I expect heavy unwinding by the arbs over the next week or so. If other traders believe in the above scenario, they may just pile on JDSU just to short squeeze the panicking arbs. I don't think the ARBs will be panicking. As long as they are long SDLI and short JDSU, they have no reason to worry. We might see an increase in the SDLI discount by about 2 to 3% but that would not cause a panic. They may unwind in the short term but others will initiate a new position thanks to the likely increase. However, the pure shorts will surely will be scrambling. They will panic!