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Technology Stocks : MRV Communications (MRVC) opinions?
MRVC 9.975-0.1%Aug 15 5:00 PM EST

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To: CF Rebel who wrote (9218)6/25/1998 10:23:00 PM
From: Jack Colton  Read Replies (2) of 42804
 
As an engineer myself, I would think that the subsidiaries would be left rather autonomous. They would not be 100% purchased by MRVC, but rather 49% or 50% - at a rather low price... low based on book and low based on earning....

The remaining 50% would be optioned such that the value of the company (and the original owners ability to receive further compensation) would be based on a formula that values the company more for sales of MRVC products and less for brand X products. In other words, go ahead and sell any products you want, but to maximize your residual returns, sell as much MRVC as you possibly can.

As a matter of fact, CF, you sound like someone who may already know all of this... Am I pretty close?

jack
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