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

To: Sultan who wrote (670)	1/31/1999 1:34:00 AM
From: mariner	Read Replies (2) \| Respond to of 815

Thread I'm trying to get a feel for where the stock price should go with the merger. I wish to offer a simple estimate and please feel free to poke holes in this theory. 1/Assume that the two new classes of shares for JDS/UNPH represent the same equity ownership in the new firm - eg. equal ownership of combined JDS/UNPH assets and equal participation in future revenues/earnings. (Does everyone believe this to be the case?) 2/ Using round numbers from Friday's close. JDS close 68cdn. UNPH 90US or 140cdn at 1.55 exchange rate. 3/Assume the actual conversion is even 50/50(close enough for government work) 4/Assume value of new shares is simply a function of adding the market caps of the 2 separate firms and then splitting amongst the two groups of shareholders. 68+140 =208/2=$104Cdn per share. Am I nuts? What am I missing. Do you need an MBA to work this out? Looks wonderful from JDS perspective. Doesn't look nearly as good from UNPH point of view. Someone help me out. PS: Pat, welcome back. Hope you enjoyed Whistler.