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

To: Jean M. Gauthier who wrote (4948)	4/27/1998 9:58:00 AM
From: Robert Douglas	Read Replies (1) \| Respond to of 7841

I have seen these "spin-offs" take many forms but essentially they come in two types 1. The company is spun off entirely to the shareholders with the parent company, Seagate, retaining no interest in the new company. This means you might get one share of Seagate Software for every 4 shares of Seagate you now own. 2. Seagate Software does an initial public offering ( IPO) with the parent company keeping a large percentage of the stock. This allows the new entity to be valued by the market and opens the capital markets to the spin-off, but management and control is still in the hands of the parent. In this case existing shareholders don't get a direct ownership unless they buy the new issue on the offering or in the after-market. I prefer the second method myself, and hope that this is what happens. If Seagate Software receives an aggressive valuation by the Street, I could see it easily attaining a market value of 2-3 billion dollars. Either way, I believe present Seagate shareholders will win.