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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (11122)	10/31/1998 9:52:00 AM
From: Sector Investor	Read Replies (1) \| Respond to of 42804

The "Conserving cash" mentality linked to possible hostile bids (to be used SOMEHOW) is definitely part of their thought process right now, because of what I heard. Keep in mind, the specific use to buyback shares is my speculation only. But, how else could this help them? Perhaps just the threat that they COULD do this is enough to ward off hostiles. <<It is quite possible that the company could be prevented from buying its own shares after a takeover is announced. Also it would require board of director approval and the board of directors might be hard pressed to legally justify such a move. >> I don't follow why this should be so. Can you elaborate? Doesn't a company have the right to protect it's own existance? Anyway, perhaps the cash prevents any unwanted takeover attempt from being "announced". Since their emphasis is on "preserving cash" now, I don't think they are actually making any such moves unless they had to. I think any large blocks we might see occurring will not come from their cash. It will be interesting to see if management substantially increases their holdings in this next buying window.