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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: Bridge Player who wrote (15937)	9/24/1999 12:05:00 PM
From: Greg h2o	Respond to of 42804

ok, if sector won't say it, i will... yes. IF that partner is strategic in nature and can add to the marketing/sales of the products. normally, i'd also say if they could add to the R&D side, but that's clearly not a need of MRV.

To: Bridge Player who wrote (15937)	9/24/1999 12:09:00 PM
From: Sector Investor	Read Replies (1) \| Respond to of 42804

I think that MRVC and NAC have to weigh the options here. Say NAC needs $10 million to fund further research, hire additional people and build THEIR infrastructure. MRVC already owns 60% of NAC for $3 million, I think. Obviously they have the option to provide the 2nd round funding themselves, keeping or increasing their 60% or possibly IPO at a later date. Or, they can elect to reduce their equity position (would NAC reduce their ownership too?) and allow someone else to provide that funding and move closer to an alliance or partnership. CW and HC are in similar positions. The second option has the advantage of setting a market value for NAC (Noam said separate valuations for all the startups was a priority) - ($X for %X) and that value applies to MRVC's and NAC's remaining holdings, and sets a floor to a future IPO. I would hope that they can still maintain majority ownership though.