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Technology Stocks : Luminent, Inc. (LMNE) -- Ignore unavailable to you. Want to Upgrade?

To: Return to Sender who wrote (4)	7/29/2000 12:19:43 PM
From: Stephen Yarger	Read Replies (1) \| Respond to of 82

I have been trying to figure out the ratio of LUMN shares that MRVC share holders will receive at the time of distribution when I realized that we are missing some very important data. That is, how many of the LUMN shares will still be owned by LUMN, not by MRVC. We have to assume that LUMN will still have an ownership stake in their own company, but how much of stake will that be? Based on other publicaly traded companies it could be as low as 10% and as high as 90%. This percentage is very important because without knowing it we cannot find out how many shares of LUMN that MRVC share holders will receive. Let's say that LUMN keeps 50% of the company (simply taking the middle ground) and that they have a total of 60 million shares outstanding (average number for a new issue of LUMN's size). In this case about 10 million would be distributed in the IPO which would leave MRVC with 20 million shares (LUMN still owns 30 million shares or half the company). Under these conditions the distribution rate would be 1 LUMN share for every 3 MRVC shares, but of course this number could vary drastically based on the percentage of insider ownership that LUMN keeps for themselves so we actually have no idea what the final ratio will be. Any thoughts?