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Technology Stocks : UNPH _ Uniphase -- Ignore unavailable to you. Want to Upgrade?

To: Craig Wilson who wrote (1158)	3/16/1999 6:46:00 PM
From: Trader Dave	Respond to of 1261

JDS is trading at a slight discount since uniphase will be the legal entity. The ratio is something around .508, the discount is around 5% or so. Don't forget the currency exchange as well.

To: Craig Wilson who wrote (1158)	3/16/1999 8:53:00 PM
From: Chris Stovin	Respond to of 1261

<<Is is true that JDS Fitel and Uniphase shareholders will each own one share of the new JDS Uniphase for each share they hold of either company? If this is so, doesn't it make sense to buy JDS Fitel now at $74.80 compared to Uniphase at $99 5/8? Am I missing something? (Like JDS Fitel owners only get one-half a share of the new company?>> Craig, it's .50855 shares of the new company. An excerpt from the news release announcing the merger of equals appears below. Cheers! Chris Under the terms of the agreement, JDS FITEL shareholders resident in Canada will, pursuant to a plan of arrangement, be entitled to receive 0.50855 shares of exchangeable stock of JDS Uniphase Canada, a wholly owned subsidiary of JDS Uniphase, or, at their option, 0.50855 shares of JDS Uniphase, for each JDS FITEL share they hold. The exchangeable shares are the economic and voting equivalent of shares of common stock of JDS Uniphase and will be exchangeable for such shares on a one-for-one basis at any time. The current shareholders of JDS FITEL and Uniphase will each own approximately 50 percent of the combined company following the merger. The structure of the transaction is expected to provide the opportunity for a tax-free exchange for Canadian holders of JDS FITEL stock.

To: Craig Wilson who wrote (1158)	3/17/1999 12:07:00 PM
From: Robert Sheldon	Read Replies (1) \| Respond to of 1261

Calculate the exchange ratio by doing this: JDS shares $CDN / $CDN for $US Exchange Rate = 73.30/1.5275 = 47.99 you can get the exchange rate at xe.net you can get the JDS price at tse.com Divide the 47.99 by the stated exchange rate of 0.50855 = US$94.36 This is the equivalent rate that UNPH shares should be trading at assuming complete parity. However at the time of this post we find UNPH trading at US$98.25. This represents an approximate 4% discount of JDS to UNPH. In other words, if a fellow was to believe that the merger was certain, it would be better to purchase the JDS shares.