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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: ratan lal who wrote (35319)	6/18/1998 7:38:00 PM
From: DavidG	Read Replies (2) \| Respond to of 53903

Ratan, A crude way to look at MU acquisition is that they sound like they doubled their company to be placed in #1or #2 position in the world. Samsung is the only one this close. Now the sector is horrible but if it picks up then look out, MU could be making big bucks without having to double SG&A and R&D. Now MU currently has a book value of 13, is it possible the new company will be 26? How much over book value is the street willing to pay? 1 1/2, 2 or more? TXN was so eager to get out of the business they took MU stock and plus gave them $750Million in a loan. More cash for Micron. If the the new company is twice the old company the debt and cash is now double to. I am sure there will be a synergy in the two operations also and a reduction in manpower. The second half of the new Micron company given by TXN is not costing them $22 a share, which is what Micron closed at today. Now I am not saying MU was fairly valued at 22 , and now that it is twice as big tomorrow it should be $44.... but.... somebody will look at the company with only 28million additional shares added and $1billion more in debt and $750 million more in cash and say it might be worth more than $22 and less than $44. Of course I don't know if MU actually doubled in size and capacity but it does appear that way. DavidG