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.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (28804)	7/25/2000 6:09:05 PM
From: kumar	Respond to of 54805

<<Qualcomm will be spinning off all of their shares>> that is very consistant with what happened in the HWP/A case. today HWP does not own any shares of A (apart from any bought as an investment - I dont know). cheers, kumar

To: slacker711 who wrote (28804)	7/25/2000 6:15:28 PM
From: Lynn Goodman	Read Replies (3) \| Respond to of 54805

Query whether transactions with Spinco must be arms length: I post rarely, not having RTFM, but follow always with great interest. Today's announcement and posters' analysis all indicate that, following the IPO and spinoff, Q will give preferential treatment to Spinco (eg, no royalty fees). In my eons ago life as a corporate lawyer, I seem to recollect a requirement that dealings between certain parties must be at arms length. One scenario in which this is true is where the parties are "related." Thinking out loud, after the distribution of Q's remaining interest to shareholders, Q and Spinco are no longer "related parties," so no problem? Maybe, maybe not. In addition, I have a little nagging thought that there is an anticompetitive issue of some sort lurking. Some of this, like the related party stuff, may only be a tax and accounting issue. The anticompetitive issue, if it exists, is larger. I am sure that between Q's lawyers and the Goldman Sachs lawyers they have signed off on all of these issues, but like I said, my thought-to be-dead lawyer's antennae are waving all around. Any thoughts? Lynn