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 : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Tony Viola who wrote (11023)	8/31/2000 11:15:33 AM
From: jad	Read Replies (1) \| Respond to of 17183

— Comments from Michael P. McGrath, managing director, financial products group of Gruntal & Co., L.L.C. on EMC spinoff of McData: Question: How do EMC Corp. (EMC) stockholders benefit and by how much, from the spinning off of McData Corp. (MCDT)? MPM: Typically, shareholders benefit from a spin-off because a specific unit in the company has the potential for its value to be realized. The old saying, "A company is worth more split up than as a conglomerate," has some merit when specific units are undervalued. The way to realize that value is to spin them off. There are also tax benefits to spinning off a unit versus an outright sale.