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

To: DiViT who wrote (47177)	11/1/1999 1:40:00 PM
From: Nevin S.	Read Replies (2) \| Respond to of 50808

Divit, good article thanks for the post. From what I have seen, I think that while the current plan for the sale of DiviCom and spin off of Cube silicon would have a partially taxable component, what will probably happen is that Cube will be scooped up by another chip maker possibly INTC or STM in a stock swap. If this can be arranged prior to the sale of DiviCom then we might be able to avoid a taxable event. That is, a simultaneous sale of the two divisions to two different entities. Cube shareholders would end up with shares from HLIT and the to-be-named company. Balkanski doesn't want to pay taxes but came up with this plan because he doesn't have a buyer yet for chip division. HLIT made it to the table first and this is Balkanski's way of saying "let the bidding begin". In fact, if they got this far on the sale of DiviCom I'm willing to bet that they have had offers from at least one other company to by Cube's chip business. This announced sale of DiviCom does two things; 1) it creates a sense of urgency and 2) it now defines the relationship between Cube silicon unit and DiviCom going forward. Questions/comments/mudslinging?