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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: tmoney who wrote (12043)	6/11/1999 12:54:00 PM
From: Tickertype	Read Replies (2) \| Respond to of 27311

All (except Wexler): Here's some food for thought re the Energizer spin-off. When the word was that they were being sold, there was some concern that OEM's would hang back due to worries about a japanese giant buying Energizer and then cutting the OEM's off from their supply. Now that prospect has been eliminated. I assume the senior management of the division will be staying on to lead the new company, and the VP has made it clear to at least one individual that he considers the Valence battery to be the 'best in the industry'. Now, apparently they weren't doing too well in their existing battery business, which is why they're being spun off, so they'll need a plan that will allow them to grow and increase shareholder value. I would think such a plan would include branching out into other lines, like Li-poly, as a core business to get away from the cutthroat competition with Duracell, and others. Since they've already worked closely with Valence, and no doubt with one or more OEM's as well, I would think they could quickly proceed with any repackaging plans they had previously expected to pursue, so maybe things are back on track now. I don't see why they'd have to wait until the spin-off is completed. Why not hit the ground running? It was also suggested to me that they may want to establish themselves as the dominant player in the rechargeable field, and that they may be looking at Valence as just the right match, i.e. they may want to acquire Valence. As we know, Valence has also said they want to dominate this industry. Is this too far fetched to be realistic, the idea of Energizer buying Valence I mean? lws, others, any opinions? I'd think if they play their cards right, they could succeed like Lucent did after it was spun off. The question, of course, is what kind of deal could be struck and what resources they could apply to make us all happy. Just some thoughts. - T -