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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!! -- Ignore unavailable to you. Want to Upgrade?

To: Linda Kaplan who wrote (6367)	5/3/1999 9:21:00 AM
From: otter	Read Replies (1) \| Respond to of 6565

re. "What happens if you don't tender your shares and they still get the required minimum?" The folks at Schwab where I trade said that in that event, you would still get proceeds. But since I've never been through this before, and since I just don't totally trust anything anybody might say about this, I would be highly interested in any info anybody else has on the question. They also said that it would be a relatively long time before I would see the proceeds under either case, and for that reason, it would be better to sell - given a reasonable discount to the tender price - than to tender or to wait. Granted, I think there was a bias, but if Instanet is any indication (20 3/4) against the offer price 21 - I would agree that for 1/4 point - I would in fact be better off. Instanet is a very poor indicator. I'm surprised the discount is as small as it is at this juncture, and would be even more surprised if 20 3/4 held in the day. Taht is, unless there is yet another interested party....

To: Linda Kaplan who wrote (6367)	5/3/1999 11:02:00 AM
From: Sultan	Read Replies (2) \| Respond to of 6565

Don't much like the deal. Few dollars short of what would be considered reasonable, in my books any way. The fact that Phillips share rose tells you that they got the better end of the deal. As for other competing offers. Although you cannot discount it, does not look likely since the BOD has endorsed this one even though they were against it in the beginning, the books have been opened to other without anything tangible (may be they were waiting to see what VLSI will settle for before upping the bid). As for your question, when all the shares are not tendered and they still get the required minimum, typically you will be forced to cash out since at some point VLSI will not trade any more. Also depends on the fine print of the merger as to what the required minimum is and at which threshold they can force the remaining share holders to cash out.