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

To: MikeM54321 who wrote (1892)	7/17/2000 2:45:22 PM
From: Sam	Read Replies (2) \| Respond to of 1989

Mike, Yes, I do recall the reply you got from the SEC. I guess it will have to be handled in the courts, where the lawyers will get a big chunk of whatever is decided. Cute. Where the heck is the gov't when you need them? Meanwhile, last week I also posted this excerpt from the recent proxy statement on the Sandisk thread: Message 14045670 As people who listed to the CC know, Seagate was as of June 30th down to 1.6m shares of Sandisk, 128m shares of VRTS, 5.67 shares of ZOOX (they've been tanking anyway, so SEG doesn't care about them), 1.38m shares of VECO, 3.574 shares of LHSP, and 294thousand shares of Globlespan. They have probably sold a lot more Sandisk since then, and perhaps some VECO too, as they have made a pretty spectacular run lately, more than doubling. Furthermore, Seagate had over $2 billion in the bank as of 6/30. As the proxy makes clear, either Veritas will have to issue more shares than was in the original example, or will have to return cash to Seagate holders, depending on the price of Veritas stock and the value of Seagate holdings. Since both Veritas stock has been going up, and the value of SEG holdings has been going up, does anyone have an answer to question why Seagate's stock seems to be trading at a pretty steep discount to the value of the deal? I realize the deal isn't projected to close until the end of Sept, but that isn't that far away. I figure with VRTS trading at about 140, Seagate ought to be trading in the mid-70s at least, shouldn't it? It is in the mid-60s, however, and seems to be having a hard time getting over 65. Where are the arbitrageurs shorting VRTS and going SEG? Or is it just too hard a deal to arbitrage, given the uncertainties of exactly how many shares of VRTS will be exchanged? Or are our efforts to derail this merger having an effect? Any ideas out there? Sam