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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Mary Cluney who wrote (64896)	9/16/1998 7:23:00 PM
From: xstuckey	Respond to of 186894

Why do I think Intel's stock price would take a hit if they acquired COMS? Two reasons quickly. First, the acquirer overpays. This is, after all, what prompts the seller to sell. Second, no weighting that I can think of prevents the stronger company's worth from suffering when it is averaged (merged) with the weaker. Best Trading, X

To: Mary Cluney who wrote (64896)	9/16/1998 11:01:00 PM
From: John Koligman	Respond to of 186894

Mary, You might want to check what occurred with T's stock price in the weeks after they announced the cable merger. As for Lucent, they have not been able to do any large deals yet due to the pooling of interests restriction that expires this October. Let's see what happens with their stock price if a blockbuster deal occurs. I have no doubt that if Intel announces a buyout of the entire 3Com company, Intel's stock price will take a hit for a substantial period of time. Look at CPQ for another example, and they got a much better deal with DEC than Intel will get with 3Com. As I mentioned in a prior post, right now I ride half my Intel for trading. If the deal hits, all my Intel becomes a trading vehicle.... John