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Technology Stocks : Seagate Technology - Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Mark Madden who wrote (980)	7/8/1999 2:56:00 PM
From: Kevin Linder	Respond to of 1989

Mark; The cost basis would be their original basis and any additions to capital made over time. So SEG would pay tax on the gain (because this is a tax free reorganization). So yes, they do have sharp tax people working on the right way to maximize share holder value in that aspect. I still think there are additional ways to maximize value though and that can be using the VRTS stock holdings to secure an additional purchase. This would not involve a sale so there would be no taxable recognition of gain. The Seagate Software division is still a fairly strong component of SEG and is growing fast. An additional purchase (or two) can be followed up with a tracking stock set up - much like with QNTM. That would allow more value to be freed for shareholders. Just a thought... Kevin Linder