Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (1737)	11/28/1997 11:50:00 PM
From: puborectalis	Respond to of 6021

Paul..the other thing that bothers me about this proposed merger is the fact that the head of NETG sat on the MCAf Board of Directors.It just smells from impropriety that this "in house " agreement benefitted the NETG at the expense of us,the MCAf shareholders.Why so expensive a deal if we're friends-I can see it if this were a hostile bid. This may all be a moot point as the deal is axed by the shareholders come Dec 1.

To: Chuzzlewit who wrote (1737)	11/29/1997 2:12:00 AM
From: Kashish King	Respond to of 6021

The Cybercop product certainly sounds like a MCAF product and as someone pointed out on the NETG thread, they are leveraging the brand equity established by Computer Associates with the name Network Associates. On the other hand, they could have acquired any number of Network Something firms to justify that trademark encroachment. Granted, those fireworks won't start until after the process has been finalized, and worst case they call it something else. May I suggest, Cheezy Warmed-over Shareware Associates?

To: Chuzzlewit who wrote (1737)	11/29/1997 8:45:00 AM
From: Narotham Reddy	Respond to of 6021

Paul when this merger is supposed to be completed. Or axed if I may. Narotham

To: Chuzzlewit who wrote (1737)	11/29/1997 12:10:00 PM
From: Philip Tseng	Read Replies (3) \| Respond to of 6021

I got out at $70. I repeatedly called out at $53~$55. MCAF is one of the leaders in the category but there are more and more players and is going to "spoil the soup!" Go to a local computer store and see how many anti-virus software are around MCAF's. I am still closely watching the stock.

To: Chuzzlewit who wrote (1737)	11/30/1997 7:26:00 PM
From: puborectalis	Read Replies (1) \| Respond to of 6021

Paul..what do you honestly feel will happen tomorrow? Will they stuff the ballot box? Will we have a new name ? Should know by what time tomorrow?

To: Chuzzlewit who wrote (1737)	12/1/1997 12:26:00 PM
From: Terry Davis	Respond to of 6021

Paul, Look back on this thread, there's definitely mention of 80% growth (as well as 60%+). Regardless, I agree a 3 to 5 year growth rate in the 40% range is entirely possible. As far as what "drives" mergers, I never touched on that. I was merly speaking to the valuation. You seem to want to stick to the academic side of things, not the market and M&A realities such as comparable transactions, market multiples etc... As far as what drives mergers; that's easy, it's called Hubris. On this point I totally agree with you; Larson fits the mold perfectly. "Synergy" is a pretty nebulous term that can mean justy about anything as far as M&A goes. In the case of Network Associates this will mean cost-cutting and product Suites. However, the vast majority of mergers/acquisitions fail (80%+) regardless of whatever "synergies" management sells to The Street. So while I agree that synergies should be the motivation for a merger or acquisition, I also think that it goes without saying. You mentioned Fred Meyer, but what about Johnson & Johnson's blowout bid for Neutrogena several years back? The win-win's are few and far between. Historically, the acquiror's stock price drops an average of 20% following the M&A announcement. Cheers, Terry