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Technology Stocks : Alliance Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (8599)	9/27/2000 11:31:40 AM
From: Ken Muller	Read Replies (1) \| Respond to of 9582

Armin: <<If nothing else, the company could potentially split into an operating company and an investment company and then sell the operating company with foundry investments to a company who could better utilize the wafer capacity>> I initially thought that would be the solution that ALSC would follow. However, since wafer capacity is only guaranteed by the UMC stock, a sale of the memory division would also need to include the UMC stock. I don't believe the Reddys would let go of that. Those funds are being used to some extent to finance the Alliance Ventures I, II, and III. In addition the Alliance Funds would have different more stringent SEC rules and tax liability would accrue immediately for the Reddys. I believe those issues would foreclose the possibility of a memory division sale.