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

To: David Miller who wrote (7784)	11/28/1997 10:24:00 PM
From: Kashish King	Read Replies (1) \| Respond to of 10836

100% pure BORL is about 5% more expensive than VSGN: Conversion Ratios: VSGN TO BORL CONVERSION RATIO: V = 0.81988 * B BORL TO VSGN CONVERSION RATIO: B = 1.21969 * V Asking price of each at the close: B = 10.1250 V = 07.8125 Friday's Best Buy: VSGN is "worth" 0.81988 of 10.1250 or 8.3013 but sells for 7.8125 Difference is 0.4889 which is 4.8 percent cheaper than pure BORL.

To: David Miller who wrote (7784)	11/29/1997 9:57:00 AM
From: i-node	Respond to of 10836

David I'm a big believer that a deal isn't a deal until the money (in this case, the stock) changes hands. A lot of stuff can foul it up. But I don't think the market would attach such a large price tag to the risk of the deal just "falling apart". My take is that if people started buying VSGN in substantive quantities, the price differential would become more representative of the "value" of the deal falling apart. But it clearly represents an opportunity for someone to buy Borland cheap--if in moderate quantities. Perhaps people ARE just that scared of getting stuck with some VSGN they don't want. Although, in hindsight, it appears VSGN was a really good buy at its recent low. I wish I had been following the stock before the announcement. David

To: David Miller who wrote (7784)	12/1/1997 8:17:00 AM
From: Bipin Prasad	Read Replies (1) \| Respond to of 10836

DM, Seriously, what's your take on the VSGN/BORL arbitrage opportunity? If punters are convinced the deal will go through, there's at least a ten percent advantage in buying VSGN over BORL - yet BORL has greater trading volume than VSGN. There must be some uncertainty here, clearly if the deal is called off, VSGN would probably revert to the fours, hence the reluctance of the market to take the risk despite the chance for a quick few bucks.... what gives? There are a few minor inconvenience to consider: Unless one buys large volume, one has to add fees to convert VSGN to BORL later. Most of all, I don't like end up with odd lots. Otherwise, buy in large volume when it's low and sell them back quickly for few bucks. take care, BPP