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Strategies & Market Trends : Arbitrage Plays -- Ignore unavailable to you. Want to Upgrade?

To: Keith J who wrote (300)	3/18/2001 4:27:48 AM
From: Stewart Whitman	Read Replies (2) \| Respond to of 376

How'd you get the 0.07366? The first year adjustment is: New Exchange Ratio = Initial Exchange Ratio x First Year Cap Price / Sun Microsystems Stock closing price on May 30, 2000 So, New Exchange Ratio = 1/10 x $92.08 / $160 = 0.05755 pre-split SUNW shares / PERQ = 0.2302 split SUNW shares / PERQ Which means a PERQ is worth $18.1875 * 0.2302 = $4.19 which seems reasonably close to the current valuation. Of course, this would mean that the acceleration event already occurred on Mar. 12 with the close at $17.0625/SUNW (or $3.92/PERQ) . Regards, Stew