Lotus may lack strong position for bargaining
Article Abstract:
Lotus Development Corp is in a difficult position as the company attempts to bargain for favorable conditions in IBM's proposed acquisition of the software company. The bid to acquire Lotus is a generous offer in which IBM would pay $60 per share, which is almost $30 per share higher than the value of the stock before the announcement was made. Lotus officials can hope only for slim concessions from IBM or a slightly higher price per share. They are hoping to convince IBM that it will be necessary to keep Lotus' programmers and developers happy in order to keep the company stable. Most of these developers and programmers support the proposed acquisition and say that they would welcome the marketing and financial strength that IBM could offer Lotus.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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Arbitragers have a field day with I.B.M.'s bid for Lotus
Article Abstract:
IBM's hostile takeover bid for Lotus has raised the spirits of professional investors, known as arbitragers, who look to profit from acquisitions and takeovers. These investors have been buying up shares of Lotus stock in the hopes a higher bid will come along for the software maker. Lotus' stock prices have skyrocketed since IBM's announcement of its $3.3 billion bid. Lotus shares recently closed at $62.375, well above the $60-per-share price. This could be the opportunity of the year for arbitragers, says one professional investor at Wyser-Pratte & Company. Even if IBM does not increase its offer, most arbitragers believe Lotus' best alternative to the hostile bid is to find another bidder, which is what arbitragers are banking on.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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