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Technology Stocks : BORL: Time to BUY! -- Ignore unavailable to you. Want to Upgrade?

To: Paul Corbett who wrote (7228)	11/9/1997 2:56:00 AM
From: Elliot W	Read Replies (1) \| Respond to of 10836

>> The speculation on buyout of Borland was reasonable at 6.5 and I think that it is even more likely as the stock price rises with good news and earnings. Companies like ORCL, CA and IBM are 30 to 100 times the market cap of Borland. A 400 million dollar deal would probably not get much discussion at their board meetings. If Borland can get Jbuilder to be a real Java program so that it can be ported to run on the big mainframes then Borland will be taken over in days. Elliot

To: Paul Corbett who wrote (7228)	11/9/1997 3:55:00 AM
From: Kashish King	Respond to of 10836

The speculation was reasonable when BORL was at 6.5 and losing money. However it would be a very expensive proposition at this stage. Actually, I would argue precisely the opposite and recall doing so back then: there's no way BORL would sell at $6.50 and who knows what sort of premium would have been accepted. AFA Oracle shareholders were concerned, they would have been getting a money losing company, whatever the price, and it would have made no sense in light of the ongoing Sedona effort at that time. As I pointed out back then, ORCL would be more likely to wait for BORL's house cleaning to complete and a return to positive earnings before mounting any buyout strategy. In so doing, the acquisition would be viewed as accretive to earnings and have a less negative, if not positive effect on Oracle's stock. In attempting to takeover BORL back then, ORCL's market value could have just as easily dropped by several times the price of the takeover! Oracle is more concerned with getting the right product and projecting the right image than whether or not they could get BORL for 200 million versus 500 million -- and we all know they wouldn't have made it to first base with a 200 million offer. A takeover makes even more sense now since Oracle has canned their own development tool effort and opted for a Java-based strategy using Borland's tools. They are NOT going to write their own since there's little chance it would turn out any better than their other failed application development tool attempts.