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From: smh@mit-eddie.UUCP (Steven M. Haflich)
Newsgroups: net.invest
Subject: Esmark -- advice needed?
Message-ID: <1934@mit-eddie.UUCP>
Date: Fri, 25-May-84 08:39:41 EDT
Article-I.D.: mit-eddi.1934
Posted: Fri May 25 08:39:41 1984
Date-Received: Fri, 1-Jun-84 01:47:52 EDT
Organization: MIT, Cambridge, MA
Lines: 24

Apparently Esmark has accepted the takeover bid from Beatrice Foods
after the latter raised "its bid for all of Esmark's common stock from
$56 a share to $60."  The stock was selling around $44 before the
takeover attempts.

I happen to hold a moderate number of shares in Esmark (slightly less
than 100 shares, bought years ago on advice from a wise uncle, now
deceased, who was a broker on Wall St.).  Obviously this is a fortunate
situation, but I am uncertain exactly what happens next.  Am I about to
receive an offer for my stock from Beatrice?  Will I somehow be required
by Esmark to sell my shares?  If so, how is the price determined?  If I
am not now *required* either sell the stock (or trade it for Beatrice),
there is still the question whether this is likely a good thing to do.
Are not companies often gutted after takeovers in order to pay off the
takeover costs?  Even if such manipulations don't reduce the paper value
of my holdings, the new stock might not show the good performance that
Esmark has experienced over the years.

I'd appreciate if any net investment gurus could comment or provide
advice.  (Let me know in return if anyone needs advice on compiler
writing or real-time Unix IO. :-)  I'll summarize anything interesting.

Steve Haflich, MIT
{decvax!genrad, ihnp4}!mit-eddie!smh, smh@mit-ems@mit-mc