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

To: Sam who wrote (1366)	3/3/2000 2:52:00 PM
From: Yogi - Paul	Read Replies (1) \| Respond to of 1989

Sam, I wonder what obstacle there is to Seagate spinning off their Venture Capital Fund after concentrating their investments into it (I've always hired accountants and magicians-- don't know squat about alchemy). Forgive the vague recall, but didn't I read in an annual report about the establishment of such a fund? Interesting that we sit here speculating on how to unlock the value in a company that has doubled in price in 4 months. Different world these days. Paul

To: Sam who wrote (1366)	3/12/2000 2:37:00 PM
From: the dodger	Respond to of 1989

Dear Mr. Veritas, We large institutional Seagate shareholders are very excited to hear that you are showing some takeover interest in this struggling little company. Our attorneys, Dewy Cheetam & Howe, assure us that you would be very fair in dealings, especially since both companies' "Boards of Directors" are most likely more inter-related than a Kentucky coal town, and I'm sure no one wants to become involved in one of those nasty class-action lawsuits we read so much about. Unfortunately, we haven't seen an offer yet, so I'd like to take this opportunity to run some numbers by you: For our core drive business -- estimated to earn an approximate $250 million next year -- we would consider letting it go at a modest S&P market multiple of 30...or 7.5 billion. ( A BARGAIN BASEMENT price for an industry leader.) For our other core holdings (excluding VRTS), namely Gadzooks ,Dragon, and SanDisk, we will let you have for a paltry 2.5 billion -- probably much less than they're worth, but that can be our "dirty little secret", just something to help whet your appetite. And that brings us to our flagship holding -- namely the 135 million shares in your company. That one is easy. We will take just the current market value of 267 a share, or 36 billion. That's a total of 46 billion. Feel free to have one of those spunky little bicycle messenger boys run us by a check (cashier's only, please), and we will send him back with the keys to the front door. Or if you prefer an ALL STOCK deal, that comes to 172.5 million of your shares. (And may I suggest -- in consideration of that poor little messenger boy -- that you send him over with just 32.5 million shares, as we ALREADY HAVE 135 million of them IN OUR VAULT !!! Sincerely yours, Great Big Institutional Investors Everywhere PS -- There's a nasty rumor afloat that you might be considering a lesser, more modest offer. But -- with prison food being what it is -- I'm sure that the Seagate Board of Directors' (the folks bound by fiduciary law to protect our interest), would NEVER consider accepting anything LESS than what we already have. To do so would be a real shame, as I'm sure most of them would have a hard time adjusting to having a wife/cellmate named "Rosco".