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Technology Stocks : Thermo Electron (TMO)
TMO 567.84+0.4%3:59 PM EST

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To: Timothy R. West who wrote (346)5/8/1999 7:45:00 PM
From: RavBruce  Read Replies (1) of 450
 
TMO has an unstated policy of buying the stock in subsidiaries
that fall far under the spin-out price. Obviously, things got
out of hand this year. The reorganization makes a lot of sense:
put like business together to cross sell and make things easier
to understand. The reason things got out of hand is they spin
out companies that grow from technology in the parent company.
But that technology may belong better in an existing Thermo:
now they are fixing it up. The shareholders of the subsidiaries
getting repurchased or traded should do ok (it probably won't be
much less than the issuing price) and the holders of TMO should
do very well with the simplified structure and new management.
Bruce
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