Seagate Technology - Fundamentals Message Board

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Technology Stocks : Seagate Technology - Fundamentals

STX 308.25

-6.8%

Jan 7 3:59 PM EST

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To: Ausdauer who wrote (1520)	3/30/2000 10:35:00 AM
From: Sam	of 1989

My understanding is that Veritas gets all of the stock holdings left over, with $800 million going with the disk drive unit. But that understanding may be wrong. I haven't yet heard the CC. Will listen tonight, have been too busy with unrelated matters to pay full attention to this. But if my understanding is correct, the deal is an amazing deal for the "private investors", including Seagate management. They get the drive unit for a PSR of less than .15 ($7.5 billion in sales/$1.2 cash put up, exing out the cash that they get). Surely they should be putting up at least $6 billion or so, still not even a PSR of 1. That would be a price of between 25 and 30 dollars a share for the drive unit. And even that would be a good deal for the drive unit, if they run it properly. Does anyone recall what Conner's PSR was when Seagate bought them in 94? It was a very troubled company in a troubled sector at that time. I think it was bought at a PSR of more than 1, though I don't really recall. I am 100% sure that the multiple was a lot more than .15. s.

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