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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (770)	3/30/2000 11:44:00 AM
From: Sam	Respond to of 30051

Well, I'm not sure that the insiders do control things. They don't have that much stock themselves, unless they've bought a lot in the past couple of weeks. I can't believe that major stockholders like FMR and Wellington, amoung others, will be happy about this, since they aren't part of the LBO group (I think those two alone have about 15% of the company, though that info may be out of date, I haven't checked the SEC filings lately). But yes, of course, you're right, it depends on Veritas's stock price--there is no collar on the deal (it is "unnecessary", says management--right. They aren't getting VRTS stock, so it is indeed unnecessary). They are getting a sweet deal out of it, though. They get about 20 million shares retired. And they get a lot of stock and cash, over a billion dollars, I think (I haven't added it all up). At least $500 million in cash. Geez, these guys (Perlman and Luzco) are amazing. I guess I should just take my hat off to them for dreaming it up. When rumors about Veritas buying Seagate first surfaced a month or so ago, I was flabbergasted. I still am! s.