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

To: Mark Madden who wrote (1516)	3/30/2000 8:05:00 AM
From: Ausdauer	Read Replies (1) \| Respond to of 1989

When Lucszo was asked point blank by one of the investment groups about the determination of the value of the DD business, how much cash was being surrendered in the transaction and what other offers were entertained it appeared he was back-pedalling. He started shuffling papers around, stated that the caller had apparently missed the first half of the presentation, and then repeated some jibberish about the Veritas portion of the deal. That just doesn't pass the sniff test. How can the CEO not know how the valuation of the DD portion was determined. Shouldn't he know this information cold and be able to recite without notes the arithmetic used to arrive at the nice, round $2 billion dollar sum??? It is like him saying "Well, we had it on the auctioning block on eBay for, like, two weeks...but we didn't have any nibbles." I got the impression the entire deal was predicated on the safe tranfer of VRTS shares back to VRTS. The flea-bitten DD portion was of the SEG's holding was more like a wrench in the gears. Somebody please tell me if the DD business is only worth $2 billion? What is the correct answer? Also, did they check with Uncle Al before dumping the vast majority of the SNDK shares? How does selling out of SNDK to raise cash to "sweeten the pot" for the VRTS transaction represent intelligent management of the 20% interest they had in SNDK to begin with. I think SEG shareholders definitely got the short end of the stick with this short-term mentality. He was so damned relieved when nobody had more questions about the deal. He just couldn't wait to slam down the receiver on his phone. Ausdauer