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From: btb@hogpc.UUCP (B.BURGER)
Newsgroups: net.invest
Subject: Old & New AT&T Stock
Message-ID: <328@hogpc.UUCP>
Date: Tue, 31-Jan-84 22:29:10 EST
Article-I.D.: hogpc.328
Posted: Tue Jan 31 22:29:10 1984
Date-Received: Tue, 7-Feb-84 07:24:19 EST
Lines: 22

All the calculating of whether "old AT&T" stock is worth more
or less than the sum of its parts is silly.  In general, the
whole will equal exactly the sum of the parts.  If the old
sold for more than the new, then everyone holding the old
would try to sell and buy the new instead, driving the
price back to equilibrium -- and vice versa (follow that?)

Of course, the market isn't perfectly efficient, so at any
given instant either the old or the new is a slightly better
buy -- but they should tend to be equal.

The suggestion that the sum of the new should exceed the old
because "you can pick whatever pieces you want" with the new
is silly.  While an individual can pick and choose, investors
as a group hold the same number of shares in each piece
(with the exception of AT&Twi, which has 10 times as many shares
outstanding).  Just remember that for every seller there is a
buyer.

Please think about this before flaming, and you won't.

--Bruce Burger    AT&T-Information Systems    Lincroft, NJ