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

To: Vanni Resta who wrote (5747)	11/26/1997 10:05:00 PM
From: Rational	Read Replies (3) \| Respond to of 9124

Vanni: It is like Lucent+ATT which was worth less to stockholders than Lucent and ATT, separately, after the spinoff. Lucent became a high flier because of independence from ATT. ATT is also doing well. Since DLT is creative with less competition, QNTM should spin it off from the DD division and sell latter to say SEG or WDC. Selling the DD division will result in a consolidation and hence fetch a far greater value to QNTM than then the pure value of the stream of cash flows from this division. The Wall Street likes pure earnings; not losses of one division eating away the gains of DLT. I think the Wall Street is not making a mistake; it may be QNTM by not spinning off DLT, IMHO. The value to shareholders could double if QNTM were to sell off its DD division and retain the DLT as QNTM. But, some managers have a funny desire to be the boss of a bigger empire; I hope QNTM managers are not afflicted by this syndrome. Sankar