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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: Rupert who wrote (2243)	9/30/1999 7:41:00 PM
From: CF Rebel	Read Replies (1) \| Respond to of 15615

Rupert, "For example, if GBLX were to spin-off FRO's Global Center web hosting business in an IPO, how exactly would this benefit GBLX holders?" It looks like they will be doing this with several parts of the company over the years. GBLX will retain some percentage ownership of the IPO'd businesses and may turn over some of the shares to then-current shareholders. Each business that is spun off will be given it's own value by the market. The values established by the market for separate companies is likely to be higher than if the companies are all wholly-owned by a conglomerate. Therefore, we'll all be a little richer. A good analogy of how odd this concept is can be seen in closed-end mutual funds. The funds usually trade at a discount to the true market values of all the companies they own combined. And, another way to look at it - potato chips. The supermarket would rather sell you eight 2-ounce bags for 49 cents each than one 16-ounce bag for $2.19. For some reason, things that are separate command higher total prices. Gettin' pretty deep here ;-) CF Rebel