Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Struggling Investor who wrote (1779)	4/22/2000 2:13:00 PM
From: Struggling Investor	Respond to of 1989

We won't know how much cash was realized from the SNDK sale until the 10-Q comes out in early May; that should be very, very interesting. Check this from the VRTS-SEG "merger" agreement: Under the Merger Agreement, immediately following the consummation of the Stock Purchase, a wholly-owned subsidiary of VERITAS will merge with and into Seagate Technology, with Seagate Technology to survive the merger and to become a wholly-owned subsidiary of VERITAS. We refer to this transaction herein as the Merger. VERITAS is not acquiring Seagate Technology's disc drive business or any other Seagate operating business. In the Merger, the Seagate stockholders will receive merger consideration consisting of: - Approximately 109.3 million shares of VERITAS common stock issued in exchange for the approximately 128 million shares of VERITAS common stock Seagate currently holds, - additional shares of VERITAS common stock issued in exchange for the investment securities, and, at VERITAS' election, for up to $750 million in retained cash, and - all cash on the Seagate balance sheet in excess of $800 million of cash working capital and after giving effect to VERITAS retained cash, debt repayment, taxes and other liabilities. So, Seagate can basically use the SNDK proceeds for anything they want from now until the deal is completed, right? Who knows what they're doing with the rest of our assets.