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

To: Sam who wrote (1532)	3/30/2000 1:17:00 PM
From: Robert Douglas	Read Replies (3) \| Respond to of 1989

Re: Win,win,win: Well I wouldn't argue with 2/3 of that. Of course it will be good for Veritas. They just retired 20 million shares an no cost. That's 3 billion dollars. Not a lot for a company that size, but a nice days work. You know what just occurred to me? When someone asked Luczo last quarter about spinning the shares to shareholders, he said that they couldn't do that without paying taxes. He seemed quite uncomfortable with the question and I have always been perplexed by the exchange. Is it really true that this couldn't have been all avoided by simply giving the shares to the SEG shareholders? Years ago when leveraged buyouts were common, companies often gave huge "dividends" to their shareholders creating "stubs". All you did when you received these shares is reduce your cost basis, sometimes below zero. I remember receiving some. I'm doubtful that the Veritas shares would have triggered a tax event for Seagate and not for shareholders either. Of course now we learn that there was motivation for management to not do this because they are going to cut themselves the deal of the century.