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

To: Peter Piper who wrote (19248)	3/4/1998 1:53:00 PM
From: Roads End	Read Replies (2) \| Respond to of 97611

Re. the issue as to share valuation at merger close date. I believe it does make a difference as to what the valuation is because it is the fair market value of CPQ stock at closing that will determine what DEC is capitalized at. For example, if CPQ were valued at $100 at the close DEC would be capitalized at roughly $95 + $30 = $125. The undesireable is that much of this capitalization would have to be recorded as goodwill, an intangible, and as such not a tax deductible item but an item that would be required to be charged against income. It is to CPQ's favor (our favor) to not have the stock price run up in advance of the closing.