Agouron Pharmaceuticals (AGPH) Message Board

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Biotech / Medical : Agouron Pharmaceuticals (AGPH)

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To: margie who wrote (4952)	7/22/1998 2:51:00 PM
From: Biomaven	Read Replies (2) of 6136

Sounds like the model Rick proposed - a tax-free spin-off of the oncology division to shareholders - is what they are contemplating. If they fund it themselves, it is not dilutive. Shareholders would own exactly the same package as before, provided they continue to hold both stocks. Hard to know if it will have any effect on total market cap. The theory is that the parts are worth more than the whole, which may have some validity, in that potential shareholders get more choice as to what they want to hold. More interesting, to my mind, is what will happen to the shorts. They have to borrow the new shares that are being spun off and the logistics of this might produce a squeeze. In any event, they may think the risks of a squeeze are enough to close out the short for while. Certainly this is what I would do if I were short (which I am not). Peter

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