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

To: Steve Fancy who wrote (4362)	6/30/1998 6:13:00 PM
From: Toby Zidle	Read Replies (1) \| Respond to of 4429

Since one DIGI share will become 0.815 ALA shares, the $30 DIGI strike price will presumably convert to 30 / 0.815 = $36.81 ALA strike price (or $36 13/16). In other words, if ALA were trading at $36 13/16, then the conversion value to DIGI would be $30. So a $30 DIGI call should convert to a $36 13/16 ALA call. Some minor rounding could be possible.

To: Steve Fancy who wrote (4362)	7/7/1998 1:13:00 PM
From: Dave Chanoux	Read Replies (1) \| Respond to of 4429

DSC continues to follow Alcatel up. You must be close to the point of celebration of sorts. The conversion discount (my terminology for the difference between DSC price and .815 Alcatel price) has been slowly shrinking and is now about 8%. As we get closer in time to closing this transaction, the discount should disappear as long as all goes according to plan. If the plan is aborted for any reason and DSC cast loose, there may be other acquirers waiting. The downside from here is if Alcatel turns into an anchor instead of a helicopter and descends back into the mid-thirties. Buy a put for protection anyone??? Regards, Dave Chanoux