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Technology Stocks : Zenith - One and Only
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To: Rich Dondo who wrote (3413)11/18/1997 12:16:00 AM
From: Robert Utne  Read Replies (2) of 6570
 
Many on the street believe that LGE will pull another Sanyo. How else to account for Zenith to have about a $500 million market capitalization?

Sanyo purchased 49% of AST Research at about $20 per share and picked up the remaining shares a few years later at a little over $5 per share. Sanyo ended up with a lot of egg on its face and still is facing negative repercussions and appears to have serious financial difficulties. What goes around comes around....

The leaders of LG and its subsidiary LGE are considerably more intelligent, farsighted and responsible than the leadership of its Korean competitor. They are well aware that capturing the remaining 43% of ZE at a low-ball price would adversely affect future partnership agreements with other global and regional players (who wants to deal with a rapist?). They also know that such an unwelcomed and untimely takeover would result in Zenith's dealership network to dry up, key employees to jump ship, consumers to avoid the "tainted" showrooms and a majority of the 12,000 ZE shareholders to join a "Friends of an Independent Zenith" class-action lawsuit against each Zenith Director and LGE.

To the contrary, all evidence points to LGE working to strenghten the market value of ZE. If anyone can prove otherwise, please send me an e...
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