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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Serge Collins who wrote (1188)	10/6/1998 9:25:00 AM
From: bayhead	Read Replies (2) \| Respond to of 14638

Hawe did not short the stock, it was a hedging strategy to maximize his profits. He was long Bay (ie. he was long NT). By Shorting NT and delivering his Bay stock against it he capture the difference premerger between of Bay and Nortel. Bay was trading at a 1-3 point discount to the post merger value 2 months prior to the merger. By "shorting" Nortel, he locked in his sales price plus got a 1-3 point premium over what he would have realized just selling bay in the open market.. In hindsight it was a very good strategy and he did not profit by the company stock moving rather he locked in his current gains. I would be more concern over what Hawe and the other Bay executives have done to earn the Multi Million payoffs....