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

To: Stu E. who wrote (1635)	4/2/2000 2:19:00 PM
From: Struggling Investor	Respond to of 1989

S&P doesn't like the deal, either. exerpt from report: Valuation - 30-MAR-00 We have downgraded our rating of SEG to hold, from buy, reflecting the news that SEG will sell its equity investments to VRTS and take the rest of the company private. We expect the shares to trade in line with the level of VRTS until closing; we also have a hold rating for VRTS. The transaction price represents a modest premium to SEG's 30-day average closing price, but we feel investors deserve more. While the transaction does allow stockholders to participate in the growth of VRTS, they are not getting full value for SEG's other investments, and the purchase price for the operating business seems low. The investment group is paying only 30% of 1999 revenues, to acquire the leader in the disk drive business, with the lowest cost base and leading technology. The group is getting this business at a very reasonable price, while shareholders are getting highly valued VRTS shares for the rest of SEG's holdings.

To: Stu E. who wrote (1635)	4/2/2000 2:21:00 PM
From: Kevin Linder	Read Replies (1) \| Respond to of 1989

Please don't misconstrue my comments that this deal is fair or that this will be the final form of the deal. If the spinoff of SEG's drive business wouldn't be happening how would that change the picture of the deal? Quite a lot in my mind. Then, suddenly VRTS would be a powerhouse up against EMC and IBM. So far, the biggest objection -- and incidentally I think the the most valid legal argument -- is that unfair value for the HDD business is being spun off to inside management. The one person who I would dearly love to hear comment about the deal probably won't -- Al Shugart. (I would like to improve my four letter vocabulary <VBG>) Kevin Linder