MEMC INT'L. (WFR -NYSE) The Sleeping Giant? Message Board

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Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant?

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To: All Mtn Ski who wrote (4554)	12/16/1999 4:30:00 PM
From: Jerome	Read Replies (1) of 4697

Tom & John, concerning the debt that WFR has built up. Is most of this debt owed to VEBA, the parent company? Here is another way things could play out. If VEBA really wants to get rid of WFR they may have to write off any debt owed to them by WFR. The acquiring company is not going to assume that much debt on top of the purchase price. This has been done by numerous companies that tried to unload subsidiaries with a heavy debt load. Eli Lilly did this to get out of the PCS business.AT&T and IBM both have dumped subsidiaries at a loss just to make them attractive to other buyers. The last alternative is to wait until earnings come out.If WFR has a good outlook going forward plus a reduced loss for the quarter it becomes a property with a higher price tag. As it has been said one man's manure is another man's fertilizer. Regards, Jerome

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