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Technology Stocks : Redback Networks, Inc. (RBAK) -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (1696)	7/12/2001 12:51:21 PM
From: Adam Nash	Read Replies (2) \| Respond to of 1956

In terms of the convertible: I agree they wouldn't be able to borrow at reasonable terms in the current market. However, they really shouldn't have to at this point. In terms of the poison pill: True, it guarantees a "friendly" merger, but it also is a way of just deterring interest. It says to prospective buyers that this is going to be a real sell job on their terms. No one wants to pay up in this market, as the LU-ALA deal demonstrated. In terms of LU-ALA: I am not surprised that LU didn't jump at the given price. Their cash situation is fine, assuming they can sell assets to meet the requirements to spin off Agere. The control issue was this issue, but that price was ugly. Then again the market is ugly. You are right that there would be shareholder lawsuits there, but I expect there are shareholder lawsuits anyway given the huge drop in valuation and the various mistakes made in terms of projecting future growth by McGinn.