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To: Due Diligence who wrote (680)	1/26/1998 5:40:00 PM
From: David W. Tucker	Read Replies (1) \| Respond to of 7701

This is why I think NorAm doesn't have to sell completely. NorAm insiders currently hold more than 50% of the stock, so they can't be bought out easily. An outside company could easily buy 30% of the company by giving NorAm a sum of money in return for newly created shares that would be worth 30% of the company. For example, if a company had 66 million shares, another company could buy 33% of the company for X dollars and be given 33 million shares. There would then be 100 million shares and the company would have a pile of cash. In NorAm's case, if they could manage to value the company at $5 per share, then for 30% of the company an outside investor could pay 21 million dollars in return for 6 milliom shares or so. There would be 20 million shares, NorAm would have a pile of cash, NorAm could start new projects, NorAm's balance sheet would look great, the company would be "worth" a lot more, and they could join NASD immediately. This is a plan I would like to see. I bet something like it is in the works (IMO). dave