Thank you very much for your reply, Rudedog. Quite frankly, until I read the news item I cited with my question, I had not expected CPQ to consider spinning-off AV. My reason was actually a question: Why spin-off AV if it can add to the bottom line?
I recognize this is purely hypothetical, but I can not immediately think of any real benefit to CPQ of spinning it off in a IPO [other than getting hold of some cash, which it really does not need _unless_ CPQ has its eye on something BIG--like IBM].
A few years ago I got shares of a spin-off at something like 1 new company share for each 12 mother company shares. If CPQ does the nice-guy thing and spins AV off to its shareholders, I would expect a ratio rather than a 1:1. If they pulled a Santa thing and did a 1:1 I think I'd sell more than half the new shares--then retire.
I would be really shocked if CPQ did anything with AV this year. In CPQ as a long term investment, when they do something with AV really does not matter to me as long as spinning it off, no matter to whom, makes sense.
BTW, correct me if I'm wrong, but I could sware there used to be something at the top of the AV home page that clearly stated AV was part of Compaq. There is nothing right now other than 'Compaq' to click in the bottom, left corner along with 'help,' 'feedback,' etc.
Actually, now that I think of it, it is a good idea to remove an immediate association between CPQ and AV on the home page if there are plans to spin it off down the line.
Regards,
Lynn |
