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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: FChang who wrote (6784)	1/20/1998 11:46:00 AM
From: ncs	Read Replies (1) \| Respond to of 42804

Not necessarily, it means Whittaker thinks they will be worth more than $35. Of course it also depends on how bad Whittaker wanted to unload the company.

To: FChang who wrote (6784)	1/20/1998 11:51:00 AM
From: Dee Jay	Respond to of 42804

I guess that the Xyplex sellers, Whittaker, expect that the stock will get to higher than $35 so as to make the option really worth something, otherwise the cash price will be all they realize from the sale. Given past history Xyplex may well have a dynamite product on the drawing boards which, because of a variety of reasons, they cannot exploit or don't want to invest in its further development (read that as Whittaker wants out of the business) whereas it is a good fit for MRVC. If the stock reaches $35 and higher that's the same as a 500,000 secondary which puts $17.5 million directly into MRV's treasury without underwriter fees, etc. While that will also dilute eps when the stock is at or higher than $35 will I care? Not one bit!