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


To: Windseye who wrote (18973)3/3/1998 11:34:00 AM
From: hitesh puri  Read Replies (1) | Respond to of 97611
 
If that is the conversion then does it not pay to hold DEC stock instead of CPQ and get a 6% premium ? Do the math as per the CPQ and DEC prices now.
I did the same when COMS bought USRX. I dumped all my COMS and bought the right number of USRX so after the deal closed I got the same of number of COMS but with a small premium.
In this case the premium is quite large.
Any holes in my logic or anything I have not considered besides the risk of the merger not going through (kind of impossible as per Masons comments regarding progress yesterday) ?

-hitesh



To: Windseye who wrote (18973)3/3/1998 3:41:00 PM
From: Windseye  Respond to of 97611
 
It would seem reasonable except there is an "out" published in the original announcement... they said "approxiamtely" or something similar, which led me to believe it was an approximation that they were permitted to adjust whenever. I can't say I know for certain but I did notice a slight hedge implied by the language.