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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: Scrapps who wrote (2055)	3/16/1999 2:12:00 PM
From: RTev	Read Replies (2) \| Respond to of 28311

As I read the reports, Allen gets 1.4 million shares of common at $90 no matter what else happens. Those are the non-float shares that insiders agreed to sell to him. If he doesn't get the rest of the stock, all he loses is the guaranteed control. He'd own less than 50% of the company, but still enough to have near-total control. It's at least possible, I believe, that the $90 tender for floating common was part of a deal to guarantee shareholder acceptance of the deal. The price was set at $1 above the prior day's close. It meant that no matter how the deal was percieved (something that's always difficult to predict), investors would be unlikely to let GNET close lower after the deal. Maybe Allen doesn't get the rest of the common, but it doesn't make all that much difference to the company since that's not money they would have seen anyway. It's money that would have gone into the market if shareholders had reacted negatively to the announcement. And it's still possible -- especially if there is a dip before the end of the week -- that large holders of stock would be willing to accept the tender on a portion of their holdings in order to remove downside pressure from the part that they keep.