Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (49591)	7/2/1998 6:40:00 AM
From: Andy	Respond to of 176387

Good morning everyone: Comp USA warned again this AM on CNBC. Direct sellers cited as one of their problems. Logically this should bode well for Dell, but we all know there is little logic on the Street. Happy 4th to all, Andy

To: Chuzzlewit who wrote (49591)	7/2/1998 8:44:00 AM
From: Geoff Nunn	Read Replies (1) \| Respond to of 176387

To Chuz: re: ATT-TCI merger As you know, ATT shareholders had their collective bell rung last week, and it was none other than their own Board and CEO who inflicted the pain - $11bil. loss of market cap. It's obvious the merger is a turkey, with all due respect to our friend Ken, whose contrarian (and Panglossian) views have been noted. As I see it, the only purpose the merger achieves is it fulfills ATT's strategic plan. What is that plan? Answer: *Merge with someone, anyone, - and do it as soon as possible.* First, ATT tried to buy a baby Bell, then it put out feelers to AOL, and now - TCI...and all in a period of maybe 6 months! They've gone through merger mates like a rhinestone cowboy going through pick-ups at a singles bar. The interesting question now is whether shareholders, who still must vote on the merger, will approve it. In a rational world they would not. Yet the market seems to be signaling they will. If it were certain shareholders would vote against the merger, the $11b. loss of market cap would be unjustified. After all, no merger no harm done. The stock price should return to its former level. The fact that the price hasn't recovered suggests that the damage is permanent, i.e., that the merger will go through. Now, how could shareholders possibly approve? One explanation is that ATT has a high degree of management control, making management autonomous (and unaccountable). While this would explain why the merger is being proposed, I don't think it would entirely explain shareholders failure to oppose it. We know that many mutual funds and pension funds hold ATT shares. On an issue as visible and clear cut as this one, one would expect them to become involved. I don't have the answer, so let me ask you a question. Do you know whether mutual funds can exercise voting rights on shares they hold? My guess is that the Vanguard S&P 500 Index fund may be the largest ATT shareholder - certainly one of the largest. Do you know whether institutions like Vanguard get to vote? Geoff