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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Pat Lombardo who wrote (1184)	1/3/1999 11:54:00 PM
From: Jorge	Read Replies (3) \| Respond to of 41369

Pat...What does the Splitting have to do with creating a negative purchase, or post-purchase situation....It seems to me splitting has nothing to do with the value of the shares...4.5 Billion in dollar value is still 4.5 in dollar value no matter how many shares that represents. In this case the number of shares is pre-set, so if there were an AOL split before the NSCP deal is finalized would not the number of NSCP shares be adjusted proportionately?....It would seem to me a split is immaterial once a Deal has already been made...The bargaining chips HAVE ALREADY BEEN AGREED TO.... If the AOL offer was not made yet then I can see where NSCP might want to know if AOL is talking about .35 Before or After an AOL split....Now that they've determined the purchase price for NSCP is AOL Before a Split it seems to me NSCP wouldn't care what AOL's stock does as long as NSCP's is proportionately adjusted.. So what difference does it make to anything whether there would be a Split now that the terms have been set? Regards, George

To: Pat Lombardo who wrote (1184)	1/4/1999 12:30:00 AM
From: Cowboy	Read Replies (1) \| Respond to of 41369

Reply Pat... >What will happen if AOL stock splits before the Netscape merger closes? >If AOL effects another stock split before completion of the Netscape merger, the exchange ratio will be adjusted to represent equivalent value. For example, if AOL were to undergo another 2-for-1 stock split, the exchange ratio for the Netscape merger would automatically become 0.90. home.netscape.com I don't quite understand your rationale. For example, you write... since NSCP trades at a slight discount to AOL... therefore AOL will test 90-180... but not break 180??? How does NSCP trading at a 2-3% discount effect whether or not AOL will split... If institutional investors are buying and holding into a pool of set shares... supply is decreased on those shares... Correct? Retail and institutional demand is clearly increasing to purchase AOL shares... It seems logical.. price should increase as a result of increased demand.. decreased supply... fueled by dead shorts - fantastic JAN 27th earnings - cable access acquisition or alliance deal likely TBA soon... Netscape PR machine goes into effect next week... My point, anything over 180 is split territory.... More importantly, can you buy me dinner if AOL does split? cowboy