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Technology Stocks : Seagate Technology - Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Linder who wrote (1193)	11/16/1999 10:23:00 AM
From: Robert Douglas	Read Replies (2) \| Respond to of 1989

Kevin, Sam -- I would be surprised if Fujitsu had talked with SEG about purchasing the company. To me, it doesn't seem like a good fit. The one thing intriguing about SEG being bought out by a foreign company is that they may be able to escape the escalating capital gains tax burden that Seagate is under. Think about this. If Seagate were to be bought in whole by a company located in a country with a less draconian treatment of capital gains taxes, then this huge unrealized gain (VRTS is $125 this morning) might escape taxation. The savings would be at least $2 billion by my calculations - hardly spare change. I would like to see this happen, not just for selfish reasons, but to highlight that the U.S. cannot burden its companies with these restrictions if they want them to compete in the borderless world of commerce. Please feel free to poke holes in my logic. I haven't really thought this through completely. -Rob