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Gold/Mining/Energy : JDS Fitel -- Ignore unavailable to you. Want to Upgrade?


To: reg who wrote (618)1/28/1999 6:00:00 PM
From: John K_k  Read Replies (1) | Respond to of 815
 
Here is the math done elementary school style so it's easy to follow.

As a jds shareholder you will end up owning half of jds (0.5 times $61 Can) plus half of UNPH (0.5 times 80 times 1.5 currency conversion factor)

Approx $30 Can for half of Jds plus $60 Can for half of UNPH

Net value of merged entity is approx. $90 - 94 $Can. based on closing prices

Now if the value of the whole is greater than the value of the parts: well you know what I mean; it's up to the market to decide the value the merged entity.

By the way the CEO of the former Uniphase is speaking tommorrow before the market opens.

By the way (Number 2), the announcement gives JDS shareholders the option of accepting shares traded on Nasdaq (JDS Unipahase) or The TSE (JDS Uniphase Canada) so it will still be RRSP eligible



To: reg who wrote (618)1/28/1999 6:01:00 PM
From: Praxis  Respond to of 815
 
Nice strategic fit, positions themselves to be a true global player and higher investment profile to the institutions.Definite pattern with these consolidations, I wouldn't be surprised to see this now merged entity be yet gobbled up again in the near future.
These mergers with US firms bode well for the future, just like the GS/Lumonics merger, hopefully they can pull out with a recovery in the semicon sector.