Robertson Stevens finds SEEK unattractive.
December 18, 1999
We continue to find the Infoseek stock unattractive for public
shareholders. The stock is trading near the price of $50, where Disney can exercise warrants to own 50.1% of Infoseek. If it were to make a bid for the rest, we doubt it would face any competition, suggesting no need to pay much of a premium. Thus, if GO works, it seems unlikely to us that public shareholders will see much stock upside. In the meantime, Infoseek owes Disney $139 million as part of Disney's purchase of a 43% stake in Infoseek.
BancBoston Robertson Stephens maintains a market in the shares of
Amazon.com, CMG Information Services, CNET, Dialog, Digital River, DoubleClick, Ebay, Inc., E*Trade, Excite, Gemstar, Getty, Infoseek, Lycos, Microsoft, NetGravity, Netscape, Network Solutions, NewsEdge, N2K, Onsale, Preview Travel, SportsLine USA, Yahoo! and has been a managing or comanaging underwriter for or has privately placed securities of Digital River, Ebay, Inc., E*Trade, Excite, Onsale, and
SportsLine USA within the past three years.
Analysts opinions differ. As I pointed out, Merrill Asset Fund has/had 2,000,000 shares and had much to gain by their release. They may or may not be right.
Robertson Stephens maintains a market in SEEK and they may or may not be right.
The market eventually will make that decision. |
