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To: michael d kugler who wrote (18843)	11/16/1997 9:22:00 PM
From: FTJoe	Read Replies (2) \| Respond to of 55532

<When this is all over, they'll own about 15%.> What's the time period for it being over?

To: michael d kugler who wrote (18843)	11/16/1997 9:29:00 PM
From: Kurt N	Read Replies (1) \| Respond to of 55532

Your example is interesting, but there is one flaw. The merged company will be worth more, than before the merger. Assuming that the assets of both companies are fairly valued. It wouldn't make a difference if I owned 90% of a company worth $1,000,000 and as a result of the merger owned 15% of a company worth $6,000,000. If I owned 90% of a company worth a $1,000,000 and then due to dilution I own 15% of a company worth a $1,000,000, that's an entirely different story. 'What is interesting here is that before the merger, Riley and the boys owned, by their own calculations, about 90% of this company. When this is all over, they'll own about 15%.' Kurt