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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: jeffbas who wrote (2751)	12/11/1997 8:02:00 PM
From: Michael Burry	Respond to of 78611

Sure, that's the obvious risk. Mike

To: jeffbas who wrote (2751)	12/11/1997 8:51:00 PM
From: Stewart Whitman	Read Replies (1) \| Respond to of 78611

Re: ZLG Here are my opinions... As far as financials, Texas Pacific Group, the acquirers, specialize in turnarounds, out-of-favour industries, etc. They've bought a couple tech. companies previously (Paradyne from AT&T ($175mm) and Globespan Technologies from Lucent). They have made numerous other acquisition and investments in other industries (the lead of the group was involved in the re-financing of Continental airlines after bankrupcy). They manage over $3 billion in capital. ZLG is a profitable company with over $4 in cash on their balance sheet. They shouldn't have any problems with financing. As far as judging whether their "heart" is still in the deal (e.g. whether they would just outright cancel), their track record on completion of deals is quite good (I haven't been able to find any that fell through). That's about all that I can evaluate. As far as lowering price below say my $17 1/2 price... given a book value just below $17, it would be a little insulting, but, I'd take the loss. Also, there were better terms regarding ZLG performance in the amended deal. Stew