Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?

To: benwood who wrote (12441)	5/11/1999 3:21:00 PM
From: Sun Tzu	Read Replies (1) \| Respond to of 16960

- Did not put a collar on stock price for the merger Disagree; this is a bargaining item and how do you know that they didn't try? How do you know that they did? I am not being arguementive here, but having an "out" clause and a price collar is both common and good management. It is only common sense and I don't see why anyone would disagree to it. Keep in mind that you can make the collar pretty wide and that the out clause may be conditioned on say accounting surprises. - Announced the merger with STB without considering the TNT inventory at STB or their existing contracts with CREAF and DIMD How do you know how they did or did not consider this? Again, how do you know that they did? Mergers don't happen over night. If they are a rush job, then it was done carelessly. Once it became clear that the merger is going to happen and they were just hammering out the details, there should have been time to get rid of most of the merchandise at a minor discount before a "delayed" announcement of the merger. Remember, this was before Christmas so moving the merchandise should not have been too difficult. On the 3dfx side, they should have tried to make guaranteed sales of Banshee contracts before the announcement. They did not do this and what they said at the time was that because Banshee cards are profitable to Diamond and Creative, then they expect continued sales into late February. To expect the your customers to continue to buy from you when you turn against them is naive and history proved how wrong this assessment was. ST