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Technology Stocks : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: Robert Calusdian who wrote (2575)	4/21/1998 7:21:00 PM
From: Sal Davis	Read Replies (1) \| Respond to of 17679

Well, Ed finally took the plunge and as he stated in a company which will complement DST in management of visual & imaging data. To anyone who is technically proficient, a laymans term analysis would be appreciated. On the financial side, I do have a few questions: <<If the transaction is completed, Ampex would issue approximately seven hundred thousand (700,000) Class A common shares to MicroNet's shareholders, and would acquire MicroNet subject to approximately $3.5 million of preferred stock, debt of $6 million, and other liabilities estimated at approximately $3 million.>> It appears Ed is not yet directly touching the $70M, but instead is issuing stock, most likely from the 1.5M shares registered almost 2 years ago. What king of diluting effect will this present? Cost of aquisition is around $10.5M all together, plus costs for due diligence .... Why not dip into the $70M instead? Will this aquisition be acreitive from the get-go? Anyway, now at least we can all stop speculating on Ed' target aquisition, not that there aren't others, and start analyzing this baby. Sal