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To: Roads End who wrote (23653)	3/30/1998 2:31:00 PM
From: Satyr	Respond to of 97611

I read the article in Barrons online edition but didn't see anywhere that they used the 55 1/8 price. I don't see what that price has to do with anything. All an Arbs trader would be interested in would be keeping the spread between the two stocks at a certain level. I don't think they care at what level.

To: Roads End who wrote (23653)	3/30/1998 7:19:00 PM
From: Greg Jung	Respond to of 97611

Arbitrage doesn't set fixed price targets on single stocks; they short one (cpq) and go long the other (dec) absorbing the risk of no takeover gives them a premium. In this case since there is so much cash involved there is an extra premium built in. When more players want to get in the spread narrows. AFAIC dec shareholders can be happy for the monetary value (as measured by the current stock prices; dec shares could easily drop under 30 in dicey market conditions) and for the fact that the upper management seem to have lost their zeal to compete. So the pure play on the DEC paradigm for strategic growth is gone. Greg