Seagate Technology - Fundamentals Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Seagate Technology - Fundamentals

STX 283.21

-1.6%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Struggling Investor who wrote (1831)	5/15/2000 11:31:00 PM
From: Mark Madden	Read Replies (2) of 1989

what if VRTS only cares about buying its stock back? Good point because I think VRTS gets a good deal by getting their stock back. Unfortunately, the SEG management and Board of Directors also agreed to give them $2 billion for the business and all assets above $800 million in operating cash. They further agreed to give VRTS $440 million if SEG backed out of the deal. VRTS would not agree to a deal like that if SEG had the option to cash in the assets and put more money in the operating budget. They must have language that limits what SEG can do with the assets. I do not think VRTS is going to be nice and let SEG off the hook but they might settle for 5 million shares of their own stock in place of the $440 million. If the deal is dependent on stockholder approval, the stockholders may get SEG off the hook by voting "no". Isn't it amazing what greed will do. The BOD and management's greed got them so blind they didn't seem to care how much of the stockholders value they were giving away. All they cared about is getting their grubby hands on the business and getting the future profits into their own pockets. I guess they felt their faithful shareholders would be so happy with the VRTS stock that they wouldn't notice the operating business rip-off. Even if they did they would not give up the 25% gain in pretax VRTS to get the true SEG value. Regards, Mark

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next