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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!! -- Ignore unavailable to you. Want to Upgrade?

To: Ram Seetharaman who wrote (5275)	2/26/1999 11:29:00 AM
From: otter	Read Replies (1) \| Respond to of 6565

Those of us who purchased LEAPS have just seen a significant increase in their value. Looking at what they are selling for now, the price reflects, according to my broker, a non-existant time premium. The reason for that is that if VLSI accepts the offer - cash - the value of the options will be returned in cash at the time the deal closes. On the other hand, if it were a stock offer (e.g. x shares of VLSI for y shares of Philips), the options would likely convert to options in the domestic analog of Philips stock and the time premium would be preserved. If VLSI rejects the offer, and if the price of VLSI returns to - oh - 13, the time value of the option will return, and the options will NOT be worth that much less than they are now - I think. Another reason for me to hang on. Any contrary opinions? They would most certainly be welcomed.