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Technology Stocks : LCI, Is it worth lettig it ride? -- Ignore unavailable to you. Want to Upgrade?

To: william r vines who wrote (385)	3/10/1998 4:48:00 PM
From: Labrador	Respond to of 411

one way to look at this is that for LCI holders, we get (1) $42 a share of QWST, plus (2) a call option on QWST with a strike price of $39.50. so if the stock is at say $50, we get $42 plus $10.50 ($50 - $39.50) = $52.50. [in actuality, we do a little better, $50 x 1.0625 = $53.13 ] My way is for the simple minded like me. there is also a floor, but hopefully we wont have to examine this.

To: william r vines who wrote (385)	3/10/1998 4:49:00 PM
From: David Lawrence	Respond to of 411

WILMINGTON, Del. -(Dow Jones)- Shareholders of Alumax Inc. and LCI International Inc., both acquired by rivals in mergers announced Monday, filed suit in Delaware Chancery Court to halt the deals, which they claim undervalue both companies. Alumax, the nation's second-largest producer of aluminum, agreed to be acquired by Aluminum Co. of America (AA), the nation's largest producer, in a cash and stock deal worth $3.8 billion. The deal is unfair to owners of Alumax stock because the company's value exceeds the price offered by Alcoa, according to a suit filed Monday on behalf of Alumax shareholder Robin Kwalburn. Alcoa announced a cash tender offer of $50 a share for half of Alumax's 53 million outstanding shares. Alumax's board of directors approved the proposed merger "without undertaking steps to accurately ascertain Alumax's value," according to the suit. LCI International (LCI), which provides long-distance services, announced it will merge with Denver-based Qwest Communications International Inc. (QWST) in a deal valued at $4.4 billion. A suit filed on behalf of LCI International shareholder Miri Shapiro claims the company's board of directors failed to conduct an auction or market check to arrive at LCI International's true worth. As a result, according to the suit, public shareholders "will not receive their fair proportion of the value of LCI's assets and business." Both suits ask the court to overturn the mergers. Representatives of Alumax (AMX) and LCI International couldn't immediately be reached for comment.