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Technology Stocks : Safeguard Scientifics SFE -- Ignore unavailable to you. Want to Upgrade?


To: ncs who wrote (1106)2/17/1998 7:50:00 PM
From: John Arnopp  Read Replies (1) | Respond to of 4467
 
Neil,

XL Vision is a separate, private company, but they get a lot of resources (money & management, etc) from Safeguard. Their function is to act as a research incubator. When they say they've "spun off" 3 companies, I believe they mean they have moved them out of their research umbrella into separate corporate identities. The 3 are ChromaVision (public, through SFE), eMerge Vision Systems (private) and Who? Vision (private). The 2 private companies will probably take themselves public through Safeguard rights offerings, because that is part of the whole model. But, there is no guarantee of that. Safeguard has sold companies to others before taking them public, or they may be more comfortable staying private (I don't think MultiGen will ever go public, even though they've been highlighted in reports before, making it seem they were ready). The new company can also elect NOT to sell to Safeguard shareholders, but that would probably mean they would have to buy themselves away from Safeguard, and generate some bad will (or have some other kind of rift).

Hope that long-winded reply helps.

--John