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Technology Stocks : Comdisco, Inc. (NYSE: CDO)

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To: John William Anderson who wrote (381)1/26/2000 12:08:00 PM
From: Bosco  Read Replies (1) of 689
 
Hi John - I think CDO management will do the thing to maximize shareholder values. In that sense, selling PRISM is not too appealing [even though I hold Mr Taub in high regards and he has claimed he heard the idea from a hedger] unless PRISM can be exchanged with tax free stock [with a huge premium, of course <VBG>] Partial IPO will bring additional cash for PRISM development w/o eating into existing CDO shareholder's bottomline. And the eventual distribution - if CDO really wants to reward her existing shareholders and if she chooses to spin the unit off entirely - is icing on the cake.

To be fair, there are benefits in selling the unit to a company with expertise in rolling out the services, but I think there is a huge tax on gain issue here

best, Bosco
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