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Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (1622)	6/25/1999 1:17:00 AM
From: LauA	Respond to of 4691

Just got serious about RAL today. I believe they plan to spin off the Eveready unit. You also get 40% of IBC and a bunch of Dupont. But there's also a lot of debt. Lau

To: James Clarke who wrote (1622)	6/25/1999 1:40:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 4691

James, I never looked close, but I know they have a few equity stakes. One is in Interstate Bakeries (IBC). I recently bought shares of IBC so I occasionally read the RAL 10Q,K. RAL will be required to reduce its stake in IBC sometime next year. The stock overhang is hurting IBC and in my view providing an opportunity to buy a position in a decent sort of company. RAL apparently sold some type of security that at maturity can be exchanged for IBC stock or cash. At least that was my understanding of it. I suppose that is their strategy for reducing the IBC stake without crushing the stock price. IBC also generates free cash so I am sure they will take a bunch also. I never looked at the value of the other equity stake but I suppose if they cash in the core RAL business is cheaper than most things out there right now. Let me know what else you are attracted to. Wayne