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Technology Stocks : Zitel-ZITL What's Happening -- Ignore unavailable to you. Want to Upgrade?

To: E Rosen who wrote (17243)	10/6/1998 3:42:00 PM
From: Bob Trocchi	Respond to of 18263

Eric... You raise a good question. >>Why then, instead of merging with such a partner, have you chosen to merge with Zitel, a company on the verge of bankruptcy, with a horrendous track record, and with no financial or organizational resources to contribute?<< I could not listen to the CC as I was not around. The point you raise in your post about needing to mount a large sales campaign is critical for MAT. Zitl does not bring any real cash for that and you can't mount a large sales campaign by giving away stock. Well I guess you can if you raise more cash via further dilutive financing. A couple of additional points. Some have asked why did Zitel pay so much. IMO, it must have been a really fun negotiation with MAT. SITL could not allow them to fail thus giving trump cards to MAT. ZITL had some trump cards in that who else would buy MAT and have to carry along a money losing, no cash balance company like ZITL. Someone else stated that in the CC, MAT claimed no errors in 100M lines of code. During my working life as a senior manager I always had to challenge every claim made to people who were making proposals. In this case how do you detect an undetected error? MAT might well have the greatest date checker on the planet but be careful about claims like no dates were missed. How do they really know? cheers Bob T.