SI
SI
discoversearch

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 : WDC/Sandisk Corporation
WDC 163.33+3.5%Nov 28 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Art Bechhoefer who wrote (11716)6/1/2000 11:58:00 PM
From: Bargain Hunter  Read Replies (1) of 60323
 
I must be missing something here, Art. It sounds like you are saying that SEG's management is planning to buy the disk drive business using cash raised by selling the SNDK shares. Surely the cash has to come from outside? SEG management doesn't own the cash they get by selling SNDK.

My interpretation of the selling is that SEG management has been spending cash by accelerating expenditures that could have waited until after the deal closed. They are guaranteed $775M in cash, so whatever they can spend first is basically free money. They need to sell some SNDK to replace that cash, but there is no specific need to spend it all.

The wild card in this for me is that I'm not clear on SEG's reporting requirements. I think the rule is that they have to file until 3 months after their holdings dropped below 10%. If that is correct, that would probably be around the time of their May 16th filing. So that could be the last filing, whether or not they sell any more stock. We will probably learn more at the SEG/VRTS closing, but it will be a little late by then. We will also learn more when they get around to a section 13 filing, but I think they have a long time for that too.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News