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 : LHSP: Lernout En Hauspie -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (1328)	7/22/1998 10:55:00 AM
From: Goolie2	Read Replies (2) \| Respond to of 2467

<<I have only seen the news reports and none of the fine detail. This must explain why GNK is trading at 4 7/8 which is a big discount to 5.60. Can you provide more details please?>> Here are the details in the press release. My interpretation is this is more L&H friendly, and doesn't present GNK as a compelling arb.... "The transaction would be structured as a merger of Globalink with a newly-formed subsidiary of L&H, pursuant to which Globalink stockholders would receive .095726 of a share of L&H common stock for each share of Globalink common stock, subject to a 10% ''collar'' arrangement. At yesterday's closing price of L&H common stock of $58.50, that would result in a price of $5.60 for each Globalink share. There will be no adjustment in the number of shares of L&H stock payable in the merger if L&H's stock price increases or decreases only 10% or less prior to the closing. If L&H's stock price increases or decreases more than 10% from $58.50, the number of shares of L&H common stock payable to Globalink stockholders would decrease or increase, respectively, to maintain a per-share consideration at the collared prices of $6.16 or $5.04. If the price of L&H common stock drops below $43.00, L&H may either elect not to proceed with the merger or to avoid substantial dilution by using cash to make up part of the merger consideration. If the per-share price of L&H common stock drops to $20.00 or less, Globalink may elect not to proceed with the merger. It is anticipated that the merger will be consummated in the fourth quarter, pending approval by Globalink's stockholders and the satisfaction of other customary conditions. " Regards, Goolie