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Non-Tech : U S FILTER (USF) A Water Stock ! -- Ignore unavailable to you. Want to Upgrade?

To: Andrew Spurlin who wrote (260)	2/10/1998 9:37:00 PM
From: Wade	Read Replies (2) \| Respond to of 361

Andrew, I am getting concerned if USF really can digest all of the acquisitions. It is one or two steps away from touching anti-trust. Therefore, I highly doubt it will buy either PLL or MIL. The rest I can think of are ION and CUNO. There are several possibilities for them to merge: 1. ION and CUNO: They are about the same size. CUNO is slightly larger. The combination is a good marriage. A possible friendly merger. 2. However, USF may want either or both of ION and CUNO. I need to calculate the price target for ION. However, I got $25 target for CUNO, based on 2x revenue. 3. MIL to buy CUNO, They have very little overlap business. Very ideal marriage. 4. PLL to buy CUNO. PLL is rival of CUNO and MIL. Therefore, I think PLL will be very unhappy to see the marriage between CUNO and MIL. Therefore, It is likely to see PLL try to buy CUNO. If they lose CUNO to MIL, then they will buy ION. 5. The best combination is MIL, ION and CUNO, these three companies. The case 5 will evenly divide the filtration business into groups. A. Pall- Gelman B. USF-CUL C. MIL-ION-CUNO These are just my personal opinion and speculation. But, I think this is the best distribution for the filter industry....except those tiny companies. My old favorite REIN is making a great improvement. It finally made some money. But, I wonder how to fit it in this industry...still thinking. I just bought some CUNO today for "possible" ~$25 target in 8 months. I will be trying to buy some ION this week. I sold my CUL too early after I waited too long and lost patience. My bad luck. However, this time I know CUNO is open for sale by September, the reward potential is pretty good. Please do not take my speculation as a buy or sell recommendation. This is just adult entertainment. I know you love ION, however, it is very often beyond our ability to avoid these crazy mergers. Take care. Sincerely, Wade