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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Bob Rudd who wrote (11367)	10/24/2000 6:17:54 PM
From: Allen Furlan	Read Replies (1) \| Respond to of 78615

Bob, and others interested in T. Now that the BOD of T has supported the breakup, what are the likely relative values of the four parts? AWE has current market cap of 50+ billion, but since the float is only 1/7 of the total shares, does this mean that T has the remaining shares and if so what does a breakup do to AWE. Then the cable assets cost T about 100 billion and those assets may be worth only half of the exorbitant price paid. Let's say that consumer and business long distance are worth 50 each(no way Jose). The sum of four parts is 200 billion or twice the current T capitalization. I do not have any factual info for any of these numbers except for cap of AWE, but my point is that something is drastically wrong here. I have hated T for a year now but am intrigued as to how the pies will viewed and moreover am trying to conceptualize how T and AWE will react relative to each other when the breakup occurs. If you go to Yahoo and do a comparison chart you will see a very tight correlation in price action and yet T is much more valuable on a relative basis. My bottom line is how could one play this as an arbitrage situation.