Andrew Schmitt

More Negativity on the LSI Logic-Agere Merger

Maybe we don't disagree.

The companies that are best candidates for mergers are the least desirable for private buyout.

I just don't see how the LSI/Agere merger is even related to a private party takeover...

More Negativity on the LSI Logic-Agere Merger

I like your stuff but you are reaching here.

First of all, you should figure in a fully priced Agere - the stock won't reach buyout value till the deal closes.

Second, you are ignoring the larged fixed opex cost reductions that come with such a combination. This will make the EBITDA returns look better.

You are applying the same private buyout logic to a merger, which doesn't work.

This makes a lot of sense to me, and I expect to see more.