thx, Mark, for a very thoughtful post. You are so right that the market didn't seem to pay much attention to Icahn's purchase. I speculate that maybe his motives are are being questioned (ie, greenmail, as you so astutely noted, arbitrage, or potential takeover.) Who knows, but it certainly adds another dimension to the picture. I can't help but wonder about the sale of (pure speculation on my part - and I'm also long:)SNDK. If I read the 8K filing correctly, SEG can basically do whatever they want with the assets until the vote ("all cash on the Seagate balance sheet in excess of $800 million of working capital and after giving effect to VERITAS retained cash, debt
repayment, taxes and other liabilities.") I just wonder if the SNDK assets were sold to raise cash for "other liabilities" - which could include greenmail. I am definitely paranoid. If greenmail is Icahn's goal (and he's pursued it successfully many, many times before), the situation is not promising for anyone but Icahn - suppose you can't blame him if you're a true capitalist, however. In other words, it looks like a win, win, win situation for CI (am being very facetious here.) It is potentially harmful for SEG shareholders if assets are being liquidated for greenmail (distinct possibility imvho.) On the other hand, does it make the company a little more in-play? I wish I knew - thought it might at first but am not so sure now. I couldn't figure out the wholesale dumping of SNDK (unless SEG knows something I don't about demand for flash memory - distinct possibility); I just have a feeling that they needed to raise cash and am very suspicious that they knew about Icahn's interest well before the filings. My vho's (or suspicions) only. trish |
