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

To: ncs who wrote (6789)	1/20/1998 12:37:00 PM
From: Dee Jay	Respond to of 42804

Neil, an all stock deal might not have been in either party's best interests since Whittaker comes away with $35 million in cash which is a bone for their stockholders and for MRVC there's that much less dilution. My guess is that MRV had the upper hand in the bargaining and said "Take $35 mill in cash and the rest in a warrant or option @ $35. We'll make a go of Xyplex by integrating it into our product lines and will reduce S & GA costs the same way so you stand a better chance of making more money as the stock increases in value." And Whittaker would invest (not spend) the $35 X 500,000 only when and if the price goes over $35; they could liquidate that holding over time and yield that much more or they could keep it as an investment if MRVC was still appreciating. Dee Jay