Disk Drive Sector Discussion Forum 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 : Disk Drive Sector Discussion Forum

WDC 163.00

-0.4%

Nov 7 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Robert Douglas who wrote (9006)	1/31/2001 10:48:06 PM
From: Tom Simpson	Read Replies (1) of 9256

<<If a Taiwan company had bought them, could they have sold off the Veritas shares without paying U.S. capital gains taxes? >> I think that may be a yes, butt.......... 1. First, the hypothetical Taiwan company would have to recognize a specific value for VRTS shares owned by SEG...no doubt they might have discounted these from the market recognizing the future difficulty of disposing of the VRTS shares and the uncertainty of their future price at time of disposal. 2. Assuming its a cash transaction, the Seagate stockholders would be subject to capital gains taxes on any gains over their cost basis in the SEG stock. Thus Unkle Sammy gets his right now instead of later. It underlines the basic financial problem inherent in Seagate when they broke it up. Whether you agree or disagree with how its operating assets were valued in the breakup (and most of us puked), the overwhelming value of the company lay in its stock portfolio and one must ask what rational manufacturing company would want to cough up that much cash to buy that stock portfolio? Best.........Tom

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next