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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (76361)	2/21/2000 4:37:00 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 132070

Wayne - You haven't picked up on what I consider to be the major point. If Warren is evaluating a business to take it private, ALL that matters is its earning potential on net capital. Whether the public company is 99% owned by Donald Trump or is shared by every American is totally insignificant. The current ownership structure just doesn't matter except as to who shares in Warren's buyout dollars. If this is true, every corporate activity that brings in dollars increases the private value, and every activity that bleeds dollars reduces it. The share count and distribution is only important to current shareholders. This means that 50% or 1% of the company could be sold in a secondary, and the cash received would increase the private value by that same amount in either case. The existing shareholders would care, but not Warren. It also means that ANY buyback of stock will reduce the private value by the amount of the cash expended. Again, the existing shareholders SHOULD care about what price per share was paid, but not Warren. Remember, in all of the above, after the buyout, shares will NOT exist. Regards, Don