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

To: Sector Investor who wrote (16537)	10/26/1999 1:59:00 PM
From: Greg h2o	Read Replies (1) \| Respond to of 42804

<<Now, OA needs some of that (half?) for their operating cash, so in this scenario (20% IPO), MRVC could get about $90 Million, OA gets the same, and MRVC's 80% gets valued at the market (not on the books though).>> i don't think so... in that scenario, the new company of OA would get $90mil free. and current MRV shareholders would get screwed out of that amount. 10% of the proceeds might go to OA under a loan from MRVC. if 20% is issued, MRVC shareholders would have to recieve compensation for that 20%...it could be they would recieve shares of the new OA for the cash OA recieves. also, you're right about the market value not being on the books, but OA IS accounted for on MRV's books. EPS (80%) from OA would be reflected on MRV's EPS.