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Biotech / Medical : Cistron Biotechnology(CIST)$.30 -- Ignore unavailable to you. Want to Upgrade?

To: Walter Morton who wrote (1956)	2/26/1999 10:54:00 PM
From: John Metcalf	Read Replies (1) \| Respond to of 2742

If Techne bought Cistron (unlikely), for fifty cents per share, the aggregate consideration would be about $12 million. TECH stock is about $25 per share, so this would require 480,000 shares to be distributed to CIST holders. You would get about one share of TECH for each 50 CIST shares you hold. If CIST were bought closer to the current quote you would get one TECH share for each 100 - 125 shares of CIST. While we're on the subject of Techne's valuation, the company has about 20.5mm shares out and a market capitalization of $512mm. Sales are roughly $85mm annualized, so it's selling for 6 times sales. Earnings are abour $14mm, so a current price/earnings ratio is around 36. As Rudy has remarked, TECH is growing well and is widely respected, and is at a reasonable valuation. Why not just sell CIST and buy TECH?