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Non-Tech : FORD (NYSE:F)

F 13.66

+0.5%

12:45 PM EST

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To: paul gambuto who wrote (299)	8/11/1998 7:21:00 AM
From: Harry Sharp	Read Replies (2) of 1065

You may be right. Remember, however, this spin-off is just the first 20% of Delphi. It likely will be at least a couple more years before the other 80 percent is spun-off to the shareholders like the Associates was to us this past April. Ford's big run-up came after they announced the spin-off (last fall) of the 80% to shareholders. Ford employees were prohibited from buying Ford stock in their 401k after that 80% announcement but you could still have bought it on the outside and made the big gains from the spin-off. A major reason for Ford's rise (due to the Associates spin-off) was because the Associates did so well in the market and that pulled Ford stock up because they still owned 80%. The first 20% came public at $29 and rose to $80... the big question mark in my mind is whether a "parts" company can perform as well as the Associates stock price did. I'm doubtful that it will. And further, in my opinion, if this Delphi spin-off is a disaster in the marketplace Visteon may not be spun-off at all. In that regard we are fortunate that we can watch and learn from GM.

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