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Technology Stocks : Spansion Inc. -- Ignore unavailable to you. Want to Upgrade?

To: NicoV who wrote (3245)	1/29/2008 6:50:29 PM
From: Joe NYC	Read Replies (1) \| Respond to of 4590

NicoV, Since Spansion market capitalisation is only $500M now, I fail to see how an IPO of Numonyx would succeed in raising more than a couple of hundred million dollars, and they need more than a billion to do anything worth doing with their 300mm shell. There is another variable to consider, which is Enterprise Value, and that includes the debt. Spansion enterprise value is now listed as $1.44B: finance.yahoo.com Which includes a little less than $1B of net debt. So if Numonyx was worth exactly what Spansion is worth, it would be worth (as far as enterprise value) $1.5B. The problem is that the original plan was for Numonyx to borrow $900M (to pay Intel and STM, and to leave some cash for Numonyx). So even with enterprise value of Spansion being the basis of the calculation, it will be difficult for Numonyx will be able to raise another $1B on top of the initial borrowing... Joe