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Biotech / Medical : Sepracor-Looks very promising -- Ignore unavailable to you. Want to Upgrade?

To: Don Miller who wrote (1947)	3/6/1999 9:30:00 AM
From: AJAG	Respond to of 10280

Before everyone goes off crying if Johnson & Johnson does make a bid for our favorite stock, SEPR, lets think about this a bit more. First,are we talking about a cash bid or J&J stock? A cash deal at that price would be a huge disappointment, but you could see another bid (Lilly? or SGP?) and possibly a bidding war. (By the way, what happens to the LEAPS if SEPR is taken out at 155 in the near future?) SEPR management might be more interested in an all-stock deal with a company like J&J. The market multiple could surge for J&J with this pipeline from SEPR and J&J has the cash flow to keep the future ICEs rather than license them out. PS- a stock deal would be tax-free (ie, deferred).