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Re: greedy__malone post# 14773

Sunday, 03/21/2010 2:44:50 PM

Sunday, March 21, 2010 2:44:50 PM

Post# of 35503
That's assuming the dilution was not part of the deal. Dilution would be the only way to have a price tag worth selling and keep the total cost reasonable for the buyer. In reality, Thresher was probably diluting already. Maybe not to 14 billion, but they were doing it because they are having cash flow issues. If they weren't having cash flow issues, they wouldn't entertain a buyout.

It isn't the only scenario, but it is not unreasonable either.

Plus, you have to take into account the fundamentals of this company. It isn't all technical. Merging with a company who has deeper pockets, established global sales channels, and the capacity to manufacture more and faster is the perfect partner. I expect that this buyer, if there is one, will be a large manufacturer in the industry who meets all those criteria.

Bet on the jockey, not the horse.