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Technology Stocks : Shiva -- Ignore unavailable to you. Want to Upgrade?


To: margin_man who wrote (2541)12/14/1997 2:27:00 AM
From: Jacky AY  Read Replies (1) | Respond to of 5036
 
I don't mind getting $18-22/share, but be realistic here. No suitors will pay +/-100% premium for the takeover. I haven't seen one yet.

I haven't seen a 100% premium takeover yet. But why not? ASND was trading around 21 when the rumor of a $40 takeover by either LU or NT hit. The stock zoomed to around 31 in no time. Now, it's no longer a 100% takeover if it materializes.

We know SHVA products are great since they are award winners. It's possible to initiate a bidding war if the proposed takeover price is not fair. Besides, I don't really see any deal to go through at ~$20 since the majority stock holders will still lose money in such a deal.

My scenario is that WS will inflat the stock once the company goes back to black. By then, a friendly deal with good premium will attract shareholders approval much easier.