Not so capital an idea.

The article comments on the breakdown of merger talks between General Motors Corp.'s wholly owned Electronic Data Systems Corp. (EDS) and Sprint. Analyst Richard Bove was elated as he expects EDS' earnings to rise 14% in 1994 and 15% in 1995. He's bullish on the Dallas-based, $8.6 billion provider of computer, telecommunications and consulting services. One can't buy stock in EDS directly, but New York Stock Exchange-listed GM Class E stock, which trades separately from GM stock, pays a dividend based on EDS' income. Bove thinks General Motors wants to sell or spin off EDS. The way things now stand, if GM unloads EDS it must give GM E holders GM stock. Under the exchange formula, for every dollar's worth of GM E stock they own, they are entitled to $1.20 worth of GM stock.