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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?


To: Sonny who wrote (54159)9/14/1998 1:45:00 PM
From: gbh  Read Replies (2) | Respond to of 61433
 
Well, on any meaningfull divergence, you could go long SRA and short
ASND in a .75 ratio. This is what the arbs do. You get to pocket the difference, as long as the deal doesn't blow up, ala TLAB/CIEN. The arbs were crushed on this one. First, deal was re-negotiated from 1/1 to .8/1. The first crushing blow. Then then deal was scuttled completely. The second crushing blow. Arbitrage is not without risk.

gary