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Technology Stocks : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: HPilot who wrote (9473)	6/23/1999 12:53:00 AM
From: Carl R.	Read Replies (2) \| Respond to of 17679

If you IPO'd the holding company, we'd be left holding shares of the Data Systems, and I for one would not be happy about it. That reminds me of when I used to own IBP (Iowa Beef Packers), which was bought out by OXY, and then later spun off in an IPO. The net effect was to remove my ownership of a good company (IBP) and leave me holding junk (OXY). Yes, if they inverted ownership and IPO'd the holding company, Ampex Data Systems would have lots of cash, and yes, we could sell our Data Systems stock and buy the Holding company stock on the open market but the effect would be to cause us to pay taxes, to raise our basis significantly, and to dilute our ownership interest. I for one would rather continue to own a part of the holding company and if the above stated transaction took place I would probably sell all my stock in Ampex Data Systems, and depending on the price, purchase some quantity of stock in the holding company. I would go so far as to suggest the reverse - IPO Ampex Data Systems and use the money to finance more internet growth, pay off the redeemable issue, pay off the junk bonds, or whatever. What the heck, you could even stick the IPO with the junk bonds and make them use proceeds of the IPO to pay them off. To me this would be much more palatable than to lose the internet interests and end up holding a non-growth company that has plenty of money but a need to re-invent itself again. Look at UTEK's performance for the last several years to see a cash-rich company with declining sales and a need to re-invent itself. Carl