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

To: Sal D who wrote (3005)	4/13/1998 7:59:00 PM
From: Sergio H	Respond to of 29382

Joe, I am not sure if the numbers changed. The conversion was Amigo Cary's area of expertise. I'll see if I can dig it up. Thanks again for today's play. Sergio

To: Sal D who wrote (3005)	4/13/1998 8:22:00 PM
From: Sergio H	Read Replies (1) \| Respond to of 29382

Joe, today was the first time specific numbers were released for DHI/CON merger. Here's the formula, from an earlier post by Max 90: 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