Seagate SEC filing from this morning.
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The results of operations for the nine months ended March 31, 2000 include...a $515 million gain on the sale of SanDisk stock.
During the quarters ended December 31, 1999 and March 31, 2000, Seagate sold 2,000,000 and 12,400,000 shares, respectively, of SanDisk Corporation common stock, adjusted for a 2 for 1 stock split on February 23, 2000, for proceeds of $67 million and $468 million, respectively, net of underwriting discounts and commissions. The sale of shares of SanDisk Corporation common stock by Seagate in the quarters ended December 31, 1999 and March 31, 2000 resulted in pre-tax gains of $62 million and $453 million, respectively.
Between March 31, 2000 and June 9, 2000, the quoted market prices of SanDisk and Gadzoox common stocks declined. As a result, the Company experienced a decrease in the fair values of its remaining investments in SanDisk and Gadzoox of $154 million and $62 million, respectively. On an after tax basis, these unrealized losses were $93 million and $38 million, respectively.
On March 29, 2000, Seagate Technology, Seagate Software Holdings, Inc. ("Seagate Software") and Suez Acquisition Company (Cayman) Limited ("SAC"), an entity affiliated with, among others, Silver Lake Partners and Texas Pacific Group entered into a Stock Purchase Agreement (the "Stock Purchase Agreement"), and Seagate Technology, VERITAS and a wholly owned subsidiary of VERITAS entered into an Agreement and Plan of Merger and Reorganization (the "MergerAgreement").
Since entering into the merger agreement through June 30, 2000, Seagate had sold an aggregate of 2,475,000 shares of its SanDisk Corporation stock, realizing gross proceeds of $169 million.
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total shares sold:
prior to 3/31/2000 merger agreement 14,400,000
after the 3/31/2000 merger agreement 2,475,000
The part I don't understand are the pre-tax proceeds of $468 million on the sale of 12,400,000 shares. That calculates to less than $40/share post-split. And for this Steve Luczo gets a $1,000,000 salary and $48 million in options?
Seagate shareholders got the shaft.
SanDisk shareholders will recover.
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