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Stocks D / DSC Communications Corp.


Subject:  Re: Alcatel buyout of DSC Date:  6/10/1998  9:00 AM
Author:  invstr1045 Number:  29 of 35

Perhaps this is a stupid question but here goes anyway...

My understanding is that DIGI is going to be converted into .815 ALA.

DIGI is priced @ 28 15/16
ALA is priced @ 40 5/16

40 5/16 (ALA)
* .815
= 32.8547 > 28 15/16

Shouldn't I be shorting ALA and buying DIGI?
What is the risk here, that the deal doesn't go through? Anything else? Thanks for any insight as to what I am overlooking, because there absolutely has to be something else to this.
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