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Strategies & Market Trends : Temp. Home of Cooperative Group-Trading

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To: Tom Hua who wrote (387)7/12/1999 8:35:00 AM
From: Rajiv  Read Replies (3) of 790
 
Tom, Any comments on the SEEK deal?

My 10-min DD indicates that it is not a good deal for SEEK shareholders.

SEEK's shareholders get around 50% of the new venture. I don't think DIS's contribution of assets is equivalent to SEEK's current market valuation. It is also interesting that a "tracking stock" is being issued and that a new separate entity is not being created. I think quite a few shareholders were expecting a buy-out. They may not like this takeover via the backdoor. Moving to the NYSE will also kill the volatility generated by the Nasdaq daytrading crowd.

Regards,
Rajiv
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