C-Cube Message Board - Msg: 12631067

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Technology Stocks : C-Cube

CUBE 37.23

-0.3%

Nov 28 9:30 AM EST

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To: John Rieman who wrote (48390)	1/20/2000 6:54:00 PM
From: Peter V	Read Replies (2) of 50808

OK, I think I get this, but when CUBE semi spins off, and we all get coupons for the new CUBE semi, the old CUBE is an empty box? Like a snake sloughing off its old skin? I haven't looked at this very closely to understand why it's necessary to spin off. Why can't they just keep going forward with the "old" CUBE after they sell off the Divi portion? Is it a tax benefit that I can't see right now? I know they said the spin will be taxable, but I'm not sure why they can't just continue with the old CUBE and not incur those taxes. Perhaps it's because the HLIT share exchange is NOT a taxable event. Any accountants or tax lawyers in the audience?

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