Hi, Qiang,
Sure CPU will be publicly traded. From my best knowledge, Sanborns will take 51 pct stake in CPU at price of $10.10 per share. The public tender offer would begin next week and would take a month to complete. It is very clear that it is not a take-over bid. This is one company to invest another company and get control right. Sanborns has right to do anything, if he can get more than 50% stake in CPU, he can change CEO, management team, business model...etc. So far, Sanborns retains Halpin and his management team to run CPU. We, stock holders, still own CPU stocks, if we don't sell them. Prodigy (PRGY) is a good example. Sanborns owns 60% stake in PRGY. I don't suggest anyone to buy or to sell any stock. It depends on you If you have confidence to the
Sanborns, you should hold your stocks, otherwise sell your stocks.
MarketWatch/NewsAlert - Story
Mexico Sanborns to take 51 pct stake in CompUSA Reuters Story -
January 24, 2000 15:34
MEXICO CITY, Jan 24 (Reuters) - Mexico's Sanborns will pay $320-$330
million to increase its stake in Dallas-based computer retailer CompUSA
Inc. to 51 percent, a Sanborns official told Reuters on Monday.
Earlier Monday Sanborns said in a statement that it would acquire
CompUSA in a tender offer worth $10.10 per share, and that it expected
Telefonos de Mexico , Microsoft Corp. and SBC Communications Inc. would be
minority investors in the company.
"Sanborns already has 14.8 percent (of CompUSA). We are thinking that
Sanborns will buy what it needs to reach 51 percent and that the rest will
go to the other three," Carlos Slim Domit, chairman of Grupo Sanborns,
told Reuters.
"Sanborns is the one that will buy control," said Slim Domit, son of
Mexican business tycoon Carlos Slim Helu.
Slim Domit said that the public tender offer would begin next week and
would take a month to complete.
He said Sanborns was looking at different credit options to finance its
portion of the deal.
"We are looking at different alternatives for financing. We still
haven't made the decision," he said.
Grupo Sanborns operates 305 retail stores, including Sanborns, Sanborns
Cafe and Sears Roebuck de Mexico, in major Mexican cities. Sanborns is
part of Slim Helu's business empire, which has been making inroads into
e-commerce and Internet over the past year.
Sanborns stock soared 7.8 percent to 22.10 pesos per share on the
Mexican stock market in afternoon trade.
CompUSA, of which Grupo Sanborns already indirectly owned about 14.8
percent, is a major U.S. computer retailer. CompUSA stock was up 2-15/16
at 9-9/16 per share.
Copyright 2000 Reuters Limited. All rights reserved.
Best wishes
James |
