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Biotech / Medical : Munch-a-Biotech Today -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (278)	3/18/1999 10:25:00 AM
From: aknahow	Read Replies (2) \| Respond to of 3158

In any merger, in any industry the market price of the stock prior to announcement of the merger, is the major factor in determination of the final buyout price. What one thinks the true worth of the company is is not material, IMO. Premiums run about 40 to 50% above the pre announcement price. In cases where an industry is fully valued discounts from the market can occur. Position taking, below disclosure levels, and perhaps getting the stock of the targeted company into friendly institutional hands prior to a public announcement may move a target up prior to announcement. IBD shows "biotechs" in 11 th place, in price performance, compared to 89 th place 6 months ago. The base period provided by the IBD differs from day to day. Perhaps some of the pharmas have already taken pre announcement positions below the disclosure limits? Have a hard time thinking the move from 89 th place was due to retail buying.