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Technology Stocks : Comdisco, Inc. (NYSE: CDO) -- Ignore unavailable to you. Want to Upgrade?

To: John William Anderson who wrote (381)	1/26/2000 12:08:00 PM
From: Bosco	Read Replies (1) \| Respond to of 689

Hi John - I think CDO management will do the thing to maximize shareholder values. In that sense, selling PRISM is not too appealing [even though I hold Mr Taub in high regards and he has claimed he heard the idea from a hedger] unless PRISM can be exchanged with tax free stock [with a huge premium, of course <VBG>] Partial IPO will bring additional cash for PRISM development w/o eating into existing CDO shareholder's bottomline. And the eventual distribution - if CDO really wants to reward her existing shareholders and if she chooses to spin the unit off entirely - is icing on the cake. To be fair, there are benefits in selling the unit to a company with expertise in rolling out the services, but I think there is a huge tax on gain issue here best, Bosco

To: John William Anderson who wrote (381)	1/26/2000 1:14:00 PM
From: Glenn Petersen	Read Replies (1) \| Respond to of 689

"does the IPO establish the price for...a sale?" Maybe. My guess is that the (current) market will give Prism a higher valuation than CDO would receive in a private transaction. The big question, however, is whether these Internet valuations will still be intact a year from now. If CDO management thinks that there will be some sort of significant market correction within the next year, they may opt for an early sale of the private entity. A tax free deal could easily be structured with WCOM if it is done with stock. I think that today's decline reflects disappointment on the part of some investors who were looking for a Prism filing this month. Also, there was no announcement on the venture capital piece. IMHO, CDO is a relatively safe buy at these levels.