VIAB (Viacom Class B shares) formerly CBS Message Board

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Technology Stocks : VIAB (Viacom Class B shares) formerly CBS

VIA 32.17

-2.6%

3:59 PM EST

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To: Larry S. who wrote (2558)	9/18/1998 9:19:00 PM
From: John M Connolly	of 4613

Hi Larry ; In that recent Business week article they gave somebody's valuation of the radio assets at $25 a share - now that times 700 M shares is$17.5B . The reason for this IPO is that CBS feels that the company is under valued and feels that the market cap of $20B is way too low. Even though " value is what another person is prepared to pay " - management is citing the other radio companies, which if my memory serves me are trading with a P/E in excess of 30. The reason I think that the P/E can be used is because if we know the earnings times the P/E number - we have the marketcap. I agree that this will be very positive for the shares - it is my opinion that management sees the share price after the IPO - as equivelent to the mid 40's for todays shares. That would be a marketcap of about $31B I think. John

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