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

To: Terry Maynard who wrote (115)	3/1/1998 7:39:00 PM
From: Stewart Whitman	Read Replies (1) \| Respond to of 1185

1. Why is OFIS doing this? OFIS needs cash to expand its office supply business. OFIS has grown by acquisitions and not any operational skill or improvement. Management at OFIS stands to benefit greatly because of their own stock options. The stock is actually cheaper than it looks - some of the businesses they bought have not fully factored into sales for full a full year - the P/S was more like 0.5 before the restructuring was announced, which is low. Clayton, Dubilier & Rice (CD&R) supplies the capital. They put $270 million down to acquire control of the company and borrow another $800 million to leverage their investment. I understand that CD&R also owns a third of Kinko's - similar business to MailBoxes, etc. and the like. Forbes had a good set of article on how LBOs work: forbes.com 2. What will be the stock ratios for the new companies? Not announced yet, but, with a 100 million shares out after the buy-back, these smaller companies are going to have to be about one for every 4 shares so that they start with a reasonable stock price (e.g. ~ $10). 3. Are there stock incentive plans for executives of New OFIS and the new companies? Not announced yet. Stew

To: Terry Maynard who wrote (115)	3/1/1998 9:06:00 PM
From: Immi	Read Replies (2) \| Respond to of 1185

torchmark spins off waddel reed inc this week.

To: Terry Maynard who wrote (115)	3/1/1998 9:09:00 PM
From: Immi	Read Replies (3) \| Respond to of 1185

EW YORK, March 1 (Reuters) - PNC Bank Corp is preparing for a possible spin-off of its asset management business, according to an article in Barron's latest edition. A spokesman for PNC told the financial weekly that such a move could be a way for the bank to unlock hidden value in its asset management unit, which PNC consolidated last month under the name of BlackRock Inc. ''It's one of our faster-growing businesses, and we are looking for ways to grow further. It's perceived in the market place as having a higher value than a bank. A spin-off or partial spin-off may be a way to achieve that value,'' PNC spokesman Jonathan Williams told Barron's. The consolidation of PNC's asset management businesses under BlackRock Inc gives BlackRock about $108 billion in assets under management, ranking it among the 25 largest U.S. asset managers. Messages left with a company spokesman's family Sunday evening were not immediately returned.