Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Sasha who wrote (18394)	2/27/1998 1:04:00 PM
From: John Koligman	Read Replies (1) \| Respond to of 97611

Sasha - Only thing I'm aware of is that CPQ gets a couple hundred million (possibly if someone else buys DEC). John

To: Sasha who wrote (18394)	2/27/1998 3:11:00 PM
From: Tom Guinther	Respond to of 97611

Sorry to butt in but along the same thought line I was wondering what everyone thought of the discrepancy between the current price of DEC and what I would assume (given a 100% sure thing merger) would be the appropriate price for DEC shares. Give that CPQ was at 32 1/16 not very long ago, the .945 stock swap with DEC shares gives each DEC share a CPQ translated value of 30.30 or a little less than 30 5/16. The cash part of the offer is $30. Based on that the "perfect" market price for DEC should be ~60 5/16. The difference between the actual and the perfect is around 5.8%. Do I have this arbitrage thing correct or is my thinking/math faulty? TomG