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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Cary Salsberg who wrote (45865)	4/24/2001 8:19:33 PM
From: Ross	Read Replies (1) \| Respond to of 70976

OK, dumb question. Since arbitrage is supposed to be mostly done by real professionals, does the $5 difference mean that they think that there is a really good chance that it will not be approved? Or do they think that ASM will drop about 4 bucks in the next 15 days? Or are they not so professional? I ought to read the details, but is there a cap on the SVGI price? If not, then I suppose the surest thing to do is short X dollars of ASML, while buying an amount of SVGI that will turn into that many ASM shares. That should only lose if the deal does not go through, right? Or, it would be bad if there was a dollar cap to the value that SVGI would get, and ASM went up a lot. Clearly, I haven't done this. Thanks for any comment. Ross

To: Cary Salsberg who wrote (45865)	4/26/2001 12:33:44 PM
From: Robert O	Read Replies (1) \| Respond to of 70976

You know what I find queer regarding coverage of the SVGI 'merger,'... here's online version WSJ article from yesterday: public.wsj.com Snippet: "Pentagon concerns, which also include a number of other issues, halted U.S. approval of asm's $1.6 billion acquisition of semiconductor company svgi Inc. President Bush might be forced to break the deadlock, a major political headache for a White House already pulled between business and national-security interests in the GOP." To my mind it is VERY misleading to publish an article as of 4/25/01 quoting the $1.6 billion as buyout price since that was based on the formula as of last year September 29, 2000. That has dropped dramatically yet article does not mention 'real' price (today's rtq values)of 34,900,000 shares of svgi x 1.286 = shares of asml svgi holders now own of 44,881,400 x asml share price now $26.26 = value of buyout $1,178,585,564.00 1.6 billion versus 1.178 billion today is quite a difference yet it seems to me anyone reading the WSJ article would (rightfully) assume buyout for svgi is for 1.6 billion when today market cap of svgi is 1.038 billion so it looks like a 54% bump form today's price but in fact based on today's price the bump is 13.5%: SVGI is worth $26.26(ASML closing price)*1.286 = $33.77. SVGI is at $29.75. RO