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Non-Tech : Grand Casinos-GND -- Ignore unavailable to you. Want to Upgrade?

To: clarence wills who wrote (362)	6/30/1998 11:25:00 PM
From: opalapril	Respond to of 380

>>I find it hard to believe the Lyle Berman would sell his stockholder down the river.<< Then you don't know Lyle.

To: clarence wills who wrote (362)	7/1/1998 12:18:00 PM
From: Vladimir Zelener	Read Replies (2) \| Respond to of 380

Clarence <<There are some on the Yahoo message board who think the price for GND will be at 25 before the end of the year.>> What kind of arguments they make to support this??? After reading the detailes about the buy out of GND I found the following. The combined gaming company will have a spinnoff capitalization of $6.025 billions, which translates into 300 million shares at $20. But current GND stock holders will receive only 13% or 780 million worth of thoste stocks. wich trnslates into $780 millions / 43millions stocks = $18 a share for current GND stock. They claim that HLT will take over the GND debt, but this sounds like gimmick, because they load the gaming company with $2 billion debt from HLT. If at the spinnoff the HLT holders will start to dump their gaming shares received as exchange then $20 a share price will definetly will go further down and $GND holders will endup with $13 to $14 shares. Even with couple of buks for the remainder of GND stock the current GND stock owners will be worse off. This is why I think the GND stock price lost nearly 20% in 2 days. If it will continue the decline to $12 then I think the deal is off. I would like to hear others opinions.