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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: andrew krull who wrote (1543)	5/15/1998 1:20:00 PM
From: Mr Bond	Respond to of 18998

Thanks for the tip, Andrew. ORU looks like a free lunch, and I am suspicious of free lunches. If it is a definitive merger, and there are no anti-trust issues involved, there is a 9% gain to be locked in here. The downside in a cash offer like this is that the deal falls through and ORU falls 20% back to its pre-announcement price. In that case, I'd expect other bidders to wade in, pushing the stock back up (maybe not to its previous level, unless it turns into a competitive auction). There seems to have been little takeover speculation in the price prior to announcement, so the stock shouldn't have to far to fall if the deal is called off. I've never tracked this sector and don't know how cannibalistic it is. I'll stay clear of this one but watch it with interest. There's less potential downside in this than in some of the stock deals announced recently, however. What's the title of Joel Greenblat's book? I'm going to look at some recent merger announcements over the next few days and give you my thoughts - your feedback is appreciated.