XOMA. Bull or Bear? Message Board

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Biotech / Medical : XOMA. Bull or Bear?

XOMA 32.13

-0.5%

Nov 28 9:30 AM EST

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To: Bluegreen who wrote (7902)	12/1/1998 11:28:00 PM
From: Eran	Read Replies (1) of 17367

Interesting timing! I am a long time lurker on this board and a XOMA stockholder. This is my first post to this board, so please bear with me. I found the timing of the Bermuda incorporation very interesting, and especially the time crunch to vote on this in a special stockholders meeting on December 29, 1998 (less than a month from today). If I read correctly the official explanation for this move, XOMA is expecting its ''fair value'' to increase. So they want to incroporate in Bermuda while their fair value is still low. I cannot explain this sudden rush unless they expect good news sometime next year. I have been mistaken in the past (many times), and stomached XOMA price roller coaster for too long. Eran From the Q&A file on the XOMA site: (http://www.xoma.com/finan/DomclQA.html) With so much going on in the Company, why do this now? Our ability to complete this reorganization without paying substantial U.S. income taxes depends on the "fair value" of our assets not being so high as to generate a large taxable gain. If we wait for product approvals, large pharmaceutical company collaborations for NEUPREX® or other major milestones, we run a risk that the "fair value" of the assets will become significantly higher and that resulting capital gains taxes will make the reorganization prohibitively expensive.

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