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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (2082)	3/23/1998 7:03:00 PM
From: LTK007	Respond to of 29382

Regards DHI/CON I have to dig up something I read about a month ago, it might explain price action(down).What I remember off-hand is that the final ratio of DHI shares to CON shares will be decided by the average of the 15 highest price trading days out the last 30 days previous to the finalization of the merger(that being 4/20/98)---so starting a week ago we entered that 30 day period. But this is the confusing part,and that is the most favorable ratio for DHI is I think 2.25 to 1,and no matter how high the price above 19.75,matters,but it must average above 19.75 or the ratio becomes 2.35 to 1. One must wonder would the arbs want to drive this to a 2.35 ratio-- but I have no idea.But then we also could take a REALLY DARK view and say something is going wrong with the merger,but there has not been the slightest hint of trouble. I still have cash looking for a home for short-term,and I was thinking this DHI is getting more attractive at this price,but can't deny that down-ticking can make one pause unless one fully understands why--which I don't.Buena Suerte,Max

To: Sergio H who wrote (2082)	3/23/1998 8:07:00 PM
From: LTK007	Read Replies (1) \| Respond to of 29382

Here are the terms of the agreement as published,if you can figure it out,your more patient than I--max90 <<<<<<Under the terms of the merger agreement, the ratio of the number of Horton shares to be exchanged for Continental shares in the proposed merger will be determined pursuant to a floating exchange ratio. The final exchange ratio will be determined based on the average of Horton's closing stock price for 15 randomly selected trading days within the 30 consecutive trading days ending five days prior to the closing date. The floating exchange ratio operates as follows: Horton Below $14.50- $16.88- $18.79- Above Share $14.50 $16.87 $18.78 $19.78 $19.79 Price Exchange Ratio* 2.759 2.759-2.370 2.370 2.370-2.250 2.250 Implied Below $40.00 $40.00 $40.00-$44.50 $44.50 Above $44.50 Purchase Price (*) Represents the number of Horton shares issued for each share of Continental The merger has been structured as a tax-free transaction and will be treated as a pooling of interests for accounting purposes. Based upon the closing stock price of D . R . Horton , Inc. on December 18, 1997, the exchange ratio for the transaction would be 2.312, and implies a purchase price per share of $44.50. The merger is subject to the approval of stockholders of both companies, various pre-merger regulatory approvals, and other customary closing conditions and is expected to close late in the first calendar quarter of 1998. >>>>> taken from press release,Max