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Microcap & Penny Stocks : Zulu-tek, Inc. (ZULU) -- Ignore unavailable to you. Want to Upgrade?

To: Jon Tara who wrote (10677)	7/15/1998 10:33:00 AM
From: Jon Tara	Read Replies (3) \| Respond to of 18444

CNBC just made a prophetical report - talking about a merger of a NASDAQ company with a BB company (sorry, I don't remember the names, maybe somebody else did) that did not go through. Reason - the BB company could not provide "sufficient documentation" during the DD phase. The reporter cited the case of Cedant Corporation as a reason why companies will be especially careful about this point before completing mergers. (Cedant was the result of a merger. One of the companies in the merger fibbed pretty boldly on earnings, and the merged company is now having to restate earnings.) More than ever, there must be audited financials. No audited financials, most likely no deal. And, as pointed out by CNBC, not every company that says they are going ot do so comes through with them. ZULU's been promising em' for quite some time, and, so far, hasn't come up with them (as far as we know, although PartyTime will write between the lines otherwise). While the agreement between the two companies includes a confidentiality agreement, does it necessarily preclude either company from using what it's learned should the deal not go through? It's entirely possible that all the hiring and acquisitions on the part of ESVS are preparations for going it alone if the deal doesn't go through. ZULU has until ESVS's shareholder meeting to come through. (Though some claim that ESVS's shareholder meeting already took place - anybody know for SURE? Aleta? As a shareholder, this should be easy for you to determine. :) )