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

To: Frank Mathis who wrote (1840)	1/22/1998 1:38:00 PM
From: Oeconomicus	Respond to of 5650

Frank, thanks for the link. Something in the story struck me as odd though. But David Takata, an analyst at Gruntal & Company, said yesterday that the ISP has been shopped around by Merrill Lynch for over a year, and that many potential buyers already have reviewed PSINet's financial books. Takata said he has set a price target of $15 a share for PSINet, making U.S. Internetworking's offer weak compared to the company's potential. "A deal [with U.S. Internetworking or another suitor] is inevitable in the next couple of days, unless IXC sweetens its deal," said Takata, adding that it is unlikely IXC will up its bid. Let's see if I understand. They've been shopping it the whole time it's been stuck in single digits and couldn't find a buyer. They make deals for cash and bandwidth to "go it alone" (sort of alone anyway). Takata says it's worth $15 (a level it hasn't seen in over a year and a half), so the offer isn't enough. Yet he thinks more bidders will materialize in the next two days at a price that the PSIX board will take. Fair restatement? What is this guy smoking? Bob PS: Don't take this as criticism of PSIX BTW, just this "analyst's" convoluted logic that serves no purpose other than to stir speculation and, possibly, push the stock closer to his target (before collapsing again as no buyers materialize).