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

To: DavidG who wrote (35352)	6/18/1998 10:00:00 PM
From: dumbmoney	Read Replies (1) \| Respond to of 53903

I must agree with David...MU got a good deal. The only cash changing hands is going from TI to MU - $750 million, which MU desperately needed.

To: DavidG who wrote (35352)	6/18/1998 11:04:00 PM
From: Thomas G. Busillo	Respond to of 53903

David, no I think you were right in the first place. I think what happened is that whoever wrote the PR tried to get cute and spin (throwing in the "to facilitate the deployment of Micron's technology throughout the business" to sort of pre-emptively attempt to answer the obvious question - "you're using what to buy all that equipment?") when they should have just laid out the facts in a simpler manner, especially the part about how the "market value of these notes is expected to be substantiallty less then therir face amount" (gee, thanks, but would you mind telling us what that means in real numbers?). From the looks of some of the posts on the TXN thread, there did seem to be a little confusion about the debt during the conf. call, but somehow the $750 mil. is covered through the converts and subordinated debt. IMHO, MU got a good deal if they can stick it out. The usual suspects from the analyst community are probably going to blow the long-term upside far out of proportion to the present-day reality. TI gets recognized as a DSP play without everyone going "yeah, but what about the DRAM business" as well as being able to put a lot of the bad stuff under the umbrella of the deal. With what ADI was saying, COMS' pitifully bad execution, and the fact that disk-drive players are still hurting, I can't see how things would be that terrific sequentially, but the Street's probably going to love the deal and ignore the fundamentals for a while. Will Kurlak roar? <g> Good trading, Tom