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

To: Satish C. Shah who wrote (20658)	3/8/1998 11:21:00 AM
From: Mohan Marette	Read Replies (2) \| Respond to of 97611

The 'effect' is inflationary for CPQ. Satish: Difficulties for CPQ since part of the acquisition price is to be paid in CPQ stocks to DEC shareholders. If CPQ stock price remains depressed it means CPQ has to dish out more shares instead of less shares to consummate the deal. In other words the effect is inflationary in nature,sort of like the predicament that Indonesia, Korea and other Southeast Asian countries are in at the moment as they will have to pay more Rupiah or Won to retire their external debt or to import goods from overseas as their currencies have depreciated considerably just like CPQ's stock which they are using as currency (partially) to acquire DEC. Here is a link to my earlier post in case you missed it in this regard. Message 3639899