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Technology Stocks : ANTEC Corp. (ANTC) -- Ignore unavailable to you. Want to Upgrade?

To: May Tran who wrote (748)	11/6/2000 1:45:15 PM
From: JimieA	Respond to of 847

<<NT could easily buy out the 18.75% of Antec interest in the old Arris. Why didn't they do that? >> Could it be that ANTC has an exclusive agreement to sell Arris equipment to the major US cable companies. ANTC would still have this agreement if NT just bought out the 18.75% of Arris. And ANTC may not have been willing to terminate this agreement without significant compensation. And NT may not want Arris when half of its' sales are through ANTC. <<If not, why NT didn't just walk away totally but instead take a 46% interest in the new Arris?>> Maybe ANTC could not reasonably afford an all cash deal to buy Arris. Initially wasn't the 46% interest valued at about $660M? ANTC has to borrow the $325M, an additional $660M in debt, without additional equity, would create a lot of leverage. <<If this deal has qualified for NT as free tax merger, then what stopping them in the future to acquire the rest of ARRIS for a tax free take over?>> I would not think the deal is tax free to NT. NT does get $325M in cash. Although a bunch of the cash does pay off Arris debt to NT, the remaining is for NT's equity in Arris.