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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: Black-Scholes who wrote (47124)	10/30/1999 1:09:00 AM
From: Black-Scholes	Respond to of 50808

Coopie, I should say I don't think a spin-off is a taxable event for CUBE. If the shareholder of CUBE sells his newly minted spun-off share then that's a taxable event. If HLIT sells the semi division, then the original CUBE shareholders will receive the after-tax proceeds - which is what you said about a sale.

To: Black-Scholes who wrote (47124)	10/30/1999 8:46:00 AM
From: coopie	Read Replies (1) \| Respond to of 50808

Good Morning. Please note the following: Message 11733554 "CUBE shareholders will receive 0.5427 shares of HLIT stock for each share of CUBE in a tax-free swap, and will also receive 1 share of stock in the spun-out Semiconductor unit. The company has left open the possibility that Semiconductor could be sold rather than spun out, which could create another tax-free transaction (a spinout of semiconductor would be a taxable event for shareholders). Either way, the acquisition of DiviCom by HLIT is pre-conditioned on the semiconductor unit being spun out or sold. Subsequently, HLIT would acquire C-Cube, whose only assets would be those of DiviCom."