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Technology Stocks : Disk Drive Sector Discussion Forum

WDC 150.99

+8.6%

Nov 24 3:59 PM EST

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To: UpwardBound who wrote (7012)	8/26/1999 2:06:00 PM
From: Robert Douglas	Read Replies (1) of 9256

The prospectus on Vixel is now out on Edgar. For those of you who don't know Western Digital owns 6.2% of Vixel which has all the makings of a hot offering. The WDC stake will amount to 1.34 million shares and the offering is slated between $10 and $12 a share. If the shares were to run to $50 (not an unlikely possibility, some say it is another ZOOX) WDC's stake would have a value of $67 million. The reason I have been interested in this is because some have felt this would help them survive the current price war. Now that the numbers are available this seems unlikely. I think that $67 million would last them about one quarter. It's too bad for WDC investors that Western sold off this business in the first place. From the prospectus: In March 1996, we acquired the ModuLink business of Western Digital Corporation for a total purchase price of $11.3 million. This acquisition represented the start of our Fibre Channel business. Charles Haggerty, president of WDC, managed to secure 50,000 shares for his own personal account. That must make WDC holders happy for him.

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