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Technology Stocks : PSIX up 26.5%, Takeover(?) -- Ignore unavailable to you. Want to Upgrade?

To: Rubber Man who wrote (1832)	1/22/1998 11:24:00 AM
From: Oeconomicus	Read Replies (2) \| Respond to of 5650

Why do ya'll think PSIX should take this "offer" seriously? When the news came out, they were saying $400 million cash to buy PSIX and implied that the financing was there. In fact, they were possibly going to buy 51%, subject to DD and financing. Would you open yourselves up to major lawsuits by walking on the IXC deal for a bunch of vague maybes? When USInternetworking's offer evaporated and IXC had moved on to other partners, the stock might as well paper your walls, but some lawyer would surely file a shareholder class action to enrich only himself. Why does anyone think this shell company could come up with $400 million to buy PSIX anyway? Especially when the deal kills a long-term backbone acquisition and alliance with a CLEC. Most on this thread seem to think that the future is so risky that they should jump at the cash. If this is true, which it may be, then who would give this guy the $400 million to buy it? Are VCs going to through money at a money losing business ISP with ADSL hitting the market in a few months? I doubt it. Are banks or even junk bond investors going to lend them the money? No way! Oh, maybe FBR can do an IPO for the shell company to raise the $400 miilion. Yeah, right. The response from the BOD was the only one they could give. Bob