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Technology Stocks : QUANTUM
QNTM 9.800-6.8%Dec 11 3:59 PM EST

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To: Rational who wrote (5750)11/27/1997 10:10:00 AM
From: Z Analyzer  Read Replies (2) of 9124
 
There are several alternatives to a pure spin-off of DLT which would accomplish the same end of allowing the market to value DLT alone.
1) They could spin off only 10% of the shares and retain 90% internally.
2) They could issue "rights" to DLT similar to what General Motors did with EDS and Hugh's Electronics when they finally realized that the market WOULD NEVER include the full value of those subsidiaries in GM's share price.
3) They could issue DLT rights equal to only 10 percent of DLT.

It is almost inconceivable that Quantum management could find the third alternative very undesirable. It should be easy to arrange given Quantum's existing debt structure and it could unlock a very substantial portion of Quantum's $4 billion in missing market capitalization.
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