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Non-Tech : SPIN-OFFS "secret hiding places of stock market profits" -- Ignore unavailable to you. Want to Upgrade?

To: Stewart Whitman who wrote (114)	3/1/1998 5:26:00 PM
From: Terry Maynard	Read Replies (3) \| Respond to of 1185

Stewart, thanks for the good analysis. I had forgotten about OFIS. I am perplexed -- maybe its because I am new to these situations. However, please let me pose some of my questions. Between all of us on this thread maybe we can arrive at some or all of the answers. 1. From a strategic perspective, why is OFIS doing this. From what I make of it, OFIS is buying back shares and in the process taking on a large hunk of debt plus selling part of the business to the investment firm whose CEO becomes New OFIS's CEO. And, of course, OFIS is spinning off the other four companies. I don't know why all the machinations to effect what seems to be a change of ownership and incurs much more debt? Won't the debt hinder New OFIS's ability to make acquisitions which has been its means of growing so fast? 2. What will be the stock ratios for the new companies -- i.e. how many shares of the new companies will OFIS shareholders receive for each share of OFIS they hold? To me this is an important piece of information that will help us to value the spinoffs. 3. Are there stock incentive plans for executives of New OFIS and the new companies? Today, at 18 1/2 OFIS appears to me to be fairly valued. However, getting the spinoffs could be a good kicker to a shareholder at this price. I apologize for raising more questions than providing answers. I will try to dig for some answers myself. However, if you have the data please post it. From it we should be able to draw sound conclusions. Good Investing Terry