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Technology Stocks : Globalink (GNK) -- Ignore unavailable to you. Want to Upgrade?


To: Moominoid who wrote (141)7/25/1998 1:04:00 AM
From: Dr. Bob  Read Replies (1) | Respond to of 159
 
Because there's always a possibility the deal might not go through, the bottom might drop out of LHSPF, etc.

Track the stock prices of WCOM and MCIC from the time their merger was announced, and you'll se a similar pattern, though not as pronounced, because there is much more demand for both those stocks.

Arbitrage opportunities are nearly always available in these situations; this one is more dramatic than most, perhaps for reasons that I am unaware of - but more likely simply because the closing is several months off, and there isn't a lot of demand for either stock at present.

Bob