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Non-Tech : Doc Stone's Bierstube und Trading Room -- Ignore unavailable to you. Want to Upgrade?

To: M. Frank Greiffenstein who wrote (570)	5/19/1999 4:35:00 PM
From: Zirdu	Read Replies (1) \| Respond to of 638

Here's a candidate for your internet value portfolio: MEDE. They are being bought out by Internet company Healtheon (HLTH) at .6593 shares of HLTH for every share of MEDE, so long as HLTH is in a certain range. Top of range is $63.70, which HLTH shot thru today, to close at 80 something. So, if deal stays as is, and HLTH stays above $63.70, MEDE will be worth about $42 today. But today MEDE closed at $32 1/2. And if MEDE takeover by HLTH is renegotiated (J. Kernen on CNBC mentioned today that there might be grounds for MEDE to get more $, given strength in HLTH), MEDE value would be even more. I figure the big discount between MEDE current price and deal price is because the deal cannot be arbitragued effectively, because of the collar on the deal. (i.e. it would be suiside to buy mede and short hlth, since hlth going a lot above $63.70 would kill you.)