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

To: Stitch who wrote (1561)	3/31/2000 1:35:00 AM
From: Gus	Read Replies (1) \| Respond to of 1989

....any thought on this one other then a simple long SEG, short VRTS? Buy LHSP. In Seagate's apparent rush to time this stinko of a deal with the S&P 500 inclusion of VRTS this Friday, they gave away their 38% stake in Dragon Systems. I strongly believe the arb opportunities in SEG/VRTS will be dwarfed by the long-term capital gains of LHSP. A $5.92B cap for a software business with over $400 million in TTM revenues (including Dragon and Dictaphone) is not out of line given its genuine growth prospects globally from PCs to cellphones. Over at the Yahoo disk drive boards, it's all about lubricants, lube jobs and the lack of foreplay by photogenic ducks. We are not alone.<g>

To: Stitch who wrote (1561)	3/31/2000 8:14:00 AM
From: tom pope	Read Replies (2) \| Respond to of 1989

Stitch, no that's all I had in mind. At yesterday's close SEG was trading some $5 below theoretical value by back of the envelope calculation, and the possibility that the deal might be sweetened if major shareholders yell loud enough is a possible kicker.

To: Stitch who wrote (1561)	3/31/2000 11:23:00 AM
From: Mark Madden	Read Replies (2) \| Respond to of 1989

I have owned SEG since 1987 so it is hard to cool my emotions on this one. Riding through many ups and downs I hoped to sell someday at a high. Instead here is what we get. For the company - $2 billion divided by 215 shares to VRTS that we will own 28% of = $2.60 per share For the non-VRTS stock holdings - $X value to VRTS that we will own 28% of = 0.28 ($X value) For any other cash above $800M - $Y value to VRTS that we will own 28$ of = 0.28 ($Y value) For the VRTS stock - 85% market value For the generosity of giving VRTS 72% of all holdings and taking their own stock at a discount - $5.00 This was deal was worked out by the people we hired to increase our value. They not only took the wages, benefits and options we paid them but also took our company when it is likely on the verge of the largest growth period in its history. Like you said, this is not a done deal. I am sure there are several managers putting together teams to offer shareholders a better deal. Some will likely surface in late May or early June to give us three things for our vote. First, they will throw the existing bums out. Secondly, they will give us true value for the company or let us keep the company. Thirdly, they will give us 100% of the value of the non-VRTS holdings that will return over 60% after taxes (instead of 28%). Perhaps they can spin off the VRTS stock and sell it to VRTS at a discount to shareholders like the existing proposal. The deal-makers make a fine profit with these proposals but not the unearned killing our existing team has proposed. Regards, Mark

To: Stitch who wrote (1561)	4/1/2000 9:42:00 AM
From: Berk	Read Replies (2) \| Respond to of 1989

Stitch In your opinion what are the odds that a Far East company would enter the fray to buy SEG? The value is compelling and the potential effect on the marketplace is very interesting. From the perspective of a meaningful bidder they are the only ones that come to mind since they don't need management that another bidder would require and the cash required for a dominant position in strategic market for them is insignificant. To me it is a very long shot, but I would be interested in your take. You probably are the best to give "cultural" odds.