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Technology Stocks : ATC Communications ATCT -- Ignore unavailable to you. Want to Upgrade?

To: thomas odonoghue who wrote (2574)	6/9/1998 6:58:00 AM
From: Northern Marlin	Respond to of 2636

If the merger is approved 33.5 million shares will be issued to IQI's shareholders based on an exchange ratio of 9.7513 shares of ATCT for each share of IQI. The merged company, AGIS, will have somewhere around 57 to 58 million shares outstanding after the merger. The company proposes to increase the number of authorized shares from 27.5 to 100 million. This would allow them to offer shares later on to reduce their debt. It is true that such an offering would dilute the value of shares already held. But who's to say that ATCT, without the merger, would not have to offer shares or take on long-term debt after 4 straight quarters of losses? Phil