for those who like to keep tabs on the competition, an update on QNTM and their previously announced plan for two tracking stocks.
fwiw, their DLT & storage systems division will trade under NYSE: DSS.
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Quantum joins the tracking-stock trend
By Reuters
Special to CNET News.com
July 26, 1999, 5:15 p.m. PT
NEW YORK--Quantum, the world's No. 2 maker of computer disk drives, today said the company's stock is moving to the New York Stock Exchange from the Nasdaq stock market, one of the rare Silicon Valley technology companies to make the switch.
Quantum said it will begin trading its two new tracking stocks on the NYSE under the ticker symbols HDD and DSS. Through the rest of this week, Quantum will also trade under its existing QNTM ticker symbol on Nasdaq. That issue closed down $1.875 at $22.875 today.
So-called tracking stocks highlight separate--and usually fast-growing--businesses within larger corporations. They trade separately and often carry reduced or no ownership rights.
The move to the New York exchange follows Friday's vote by Quantum shareholders to issue tracking stocks that follow the performance of the company's Hard Disk Drive (HDD) group and its DLT and Storage Systems (DSS) group.
On August 3, Quantum will retire the QNTM Nasdaq symbol.
Quantum shareholders will get one half share of HDD and one share of DSS for each share of QNTM held. For example, a current shareholder holding 1,000 QNTM shares will receive 1,000 shares of DSS and 500 shares of HDD.
"It may take some time for the tracking stocks to be fully seasoned," Michael Brown, Quantum chief executive told Reuters. "The market value of Quantum has to be allocated across the two tracking stocks."
Bear Stearns analyst Andrew Neff, in a recent research brief, said he valued the combined disk drive and storage entities in a range of $34-$52 a share.
In leaving Nasdaq, which is dominated by technology stocks, Quantum will join Seagate Technologies, the No. 1 hard disk maker, EMC, a top storage systems maker, and other rivals which trade on the New York exchange. |
