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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Sosmartinov who wrote (34896)	11/24/1999 10:33:00 AM
From: Rainmaker	Read Replies (1) \| Respond to of 36349

What to do with $300M - $400M cash proceeds from sale of ME unit. I've sent the following to Mr. Pascoe in the hopes of planting the seed. Here's the excerpt. ..please consider the following idea with respect to proceeds from pending sale of the Micro Electronics Unit. Having an apparent value between $300M and $400M, consider a one-time CASH distribution to the shareholders. This serves many purposes and an approach is provided for this activity to avoid wild stock price fluctuations. Assume the following: 1) Sale proceeds = $300M 2) 70M shares outstanding The one-time cash distribution would equal $4/share; the remaining $20M is to be used to administer the program. Distribute the money equally over a four- or eight-quarter cycle. This prevents stock runup; rewards long-term investors; provides added value to PAIR stock by creating greater desirability; and gives PAIR further time to implement the updated sales, marketing, and engineering programs. ...