El,
You are correct, that is what I said...After reading ther post fromsomeone who said it is just like the pepsi/yum deal, I am doubting myself. In my office, they were saying details were far from available and it would be a 9ipo, not a spin-off. Maybe my sources were wrong. I'n not sure how they could actually pull off a spin-off. CPQ is worth so much more than AV, and the logistics of doing the spin off I think would be much more difficult than an outright ipo to the public..........I do wonder why they would want to raise cash though, their IRR is much higher than that of cash and they generate a ton of it on their own. I also wonder why they would invest hundreds of millions if not billions into AV, if they were going to just spin it off to the public....I'm no CFO but that sounds a little like shareholder charity to me....My best GUESS is that they could raise a ton of cash to institute an enourmous share buyback, ....that would help the stock and earnings all in one fell swoop, also would provide a large buyer when the markets are correcting. If I couold run the company for 1 minute, I would institute that plan and pay myself 1mm for doing it, then fire myself....with severance |
