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To: Frank A. Coluccio who wrote (7049)	3/28/1999 3:30:00 PM
From: Benkea	Read Replies (2) \| Respond to of 29970

RE: ATHM/XCIT merger I dared not ask this question on Yahoo for fear that it would melt the minds of the 13 year olds there. Why is ATHM ($18.76 bil market cap) giving XCIT ($7.55 bil market cap) shareholders 1.049102 ATHM shares for each XCIT share? I ask this because I bought XCIT Thursday or Friday and shorted 1.049102 shares of ATHM for each XCIT share to capture the 14% discount for a deal that should close in 2 to 6 weeks. This provides and relatively low-risk annualized return of 168% based on a 4 week closing. The 1/18/99 press release says "about 3 months". Anyway, I would like to add to the position this week, but I am getting worried that I am missing something cause it just looks to easy. Things that look too easy usually aren't. Can anyone help me figure out why an acquiring company whose market cap is 148% greater than the target company would pay 1.04 of itself to buyer a company worth 40% of itself? Thanks in advance!

To: Frank A. Coluccio who wrote (7049)	3/28/1999 4:27:00 PM
From: Ahda	Respond to of 29970

Frank Thank you as always. They will indeed need a broader band than any of the alternatives we've discussed here. Perhaps (and I haven't heard this mentioned anywhere else) they will use a Trojan Horse of their own. Perhaps they'll elect to buy out a major network broadcaster and commandeer their channel allocations on all cable systems. I think you are going to see this be maybe not quite like this net networks buying out cable will be next i feel.