El, you certainly do a great job at finding interesting articles/ info/links, etc.
While I would LOVE to obtain shares of AV as a spin-off by virtue of my CPQ holdings, I believe the article is right in that determination of valuation of the new AV "company" and its corresponding shares would be difficult (and consequently, undervalued) As such, the benefit in terms of # of AV shares received per CPQ shares owned would not be huge.
On the other hand, IF EP will make a bonafide committment to using AV as a major play in an e-commerce strategy AND he brings in management to plan and implement this strategy outside of the traditional CPQ "culture," I think the role of AV in CPQ's "total enterprise solution" direction truly has the potential to clearly differentiate CPQ from any other company. In the intermediate and, especially, long run, this option will offer far greater shareholder value, IMO. The big keys and questions will be in execution, which history suggests EP should pull off. |
