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


To: PCSS who wrote (7454)11/18/1997 9:31:00 AM
From: Neil Booth  Read Replies (1) | Respond to of 10836
 
Well, If you believe this deal is going to work, there's an arbitrage here.

Suppose you own 1,000 BORL. Sell today for (say) 11 3/4 and buy 1000 / 0.81988 = 1220 VSGN shares at (say) 7 1/4.

Net proceeds = $2,905, and if the deal goes through, you end up with your 1,000 Borland shares again.

Any comments? The prices above are those indicated at the open.

Neil.