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Technology Stocks : Seagate Technology - Fundamentals
STX 286.22+0.3%Dec 26 9:30 AM EST
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To: MikeM54321 who wrote (1478)3/29/2000 8:03:00 PM
From: Z Analyzer  Read Replies (1) of 1989
 
All you need to read to know you've been screwed is that the investment group including SEG management is buying SEG's disk business and Seagate software for a mere $2 billion AFTER PAYING OFF ALL DEBT AND RETAINING $800 MIL WORKING CAPITAL. So the price is really $1.2 bil.
Works out to about $10 per share which I don't believe SEG has ever traded at. Shareholders being given $5 per share cash or $1.1 bil. Wouldn't you rather own the operating businesses yourself for a mere $5 or $10 per share investment given that SEG has never traded at that price? Could this deal not have been structured so that SEG shareholders as opposed to management participated in the operating businesses? Obviously, it could. Now the value investors who own SEG will get the opposite of what they wanted and will dump at the first opportunity cratering the price. But I predict Veritas will crater long before they get the chance.

Would management do this deal if they weren't part of it?
Not a chance in hell! Maybe this is big enough to bring the class action lawyers out to do some real work. The SEC needs to begin going after the blatant conflict of interest inherent in management led takeovers. -Z
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