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Technology Stocks : Intermedia Communications ICIX -- Ignore unavailable to you. Want to Upgrade?

To: Wayne Wiechart who wrote (284)	12/20/2000 1:49:51 PM
From: Rubble	Read Replies (2) \| Respond to of 313

I just spoke to investor relations. They insist that the merger will still take place in the first quarter next year. I also took a look at the 8k that was filed in early September and found no clause that would warrant WCOM to cancel the merger. The impending lawsuits are not among the causes delineated for a unilateral cancellation by WCOM. And the directors of both ICIX and WCOM must agree to cancel the merger for other reasons. I seriously doubt the latter will happen, given ICIX' price. Furhtermore, the sec 203 waiver was problematic when it was declared, and WCOM knew it. WCOM assumed the risk that it would be challenged when they requested that the DIGX board grant it. It would be outrageous for WCOM to now declare that they are reneging on the deal because there is uncertainty about something they requested that they knew was problematic. In any case, the judge refused to grant a preliminary injunction to throw out the 203 waiver, so the deal must proceed regardless. The $2.5 billion suit was related to the lost opportunity for the DIGX minority in not being bought out, and did not stem from the 203 waiver. The judge already said that this argument had little merit. At worst I see the 203 waiver valued in the tens of millions, which is a small sum in a $6 billion deal. In a couple months, ICIX shareholders should receive 1.18 shares of WCOM, quite a windfall according to today's prices.