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Technology Stocks : Osicom(FIBR) -- Ignore unavailable to you. Want to Upgrade?

To: Afaq Sarwar who wrote (6877)	5/19/1998 1:36:00 PM
From: Bryon Bothun	Read Replies (1) \| Respond to of 10479

>>. This seems to imply that these investment banking consultants concluded that with this huge dark cloud hanging over Par, it would be difficult to sell any part of this new company to new investors. << Whoa there Nellie! Talk about going out on a limb. From just a quick internet search it appears that several hundred of these rights offerings have taken place in the last couple of years by various (and well respected) companies. Are you IMPLYING that all of these companies hard large dark clouds hanging over their heads? The more I read the more I think that this may work out for us. I'm not sure that I agree with the decision to sell the EN unit, but if they do I am beginning to support this path. Bryon

To: Afaq Sarwar who wrote (6877)	5/19/1998 2:36:00 PM
From: David Pawlak	Respond to of 10479

Why did they choose this method? Well, to take a quote from a SafeGuard press release ..."A rights offering is a simpler and more efficient process to take a company public" In addition, it wouldn't surprise me if this were a strategic plan designed to prevent the stock being arbitraged as a result of its recent financing with CSFB. You also mentioned that an IPO would give the company $$ to ramp up the GigaMux. This is also what the rights offering does as well. The proceeds of the rights offering typically goes to the parent company and the proceeds of the IPO goes to the spin-off.

To: Afaq Sarwar who wrote (6877)	5/19/1998 2:46:00 PM
From: David Pawlak	Read Replies (1) \| Respond to of 10479

Afaq- I posted this on the Yahoo board to help clear up some of the confusion. Osicom didn't give out details on the deal for a good reason. That reason is because they simply don't have them yet. I spoke with Gorman yesterday and was told that so far, all they've done is engaged the underwriter. The process has been started and due diligence begins this week. Subsequent to due diligence, the terms will be hashed out and a registration will be filed. The company knows the press release has caused confusion, but they were required to disclose as much as they could since they have engaged the underwriter and is a material event. More details about the terms were not disclosed because they simply haven't been determined yet. Judging from other deals, I would expect details as soon as 1 month in the form of a registration statement. Judging from other deals as well, I would expect that that the IPO will be trading on it's own within 90 days... give or take 30 days. Why so soon? because the process has deadlines to meet once the ball gets rolling. For instance, once due diligence is completed, the deal must get done in x amount of days thereafter because if it doesn't, the due diligence process must be done over again as time changes the relevance of what was reported. In my opinion, this rights offering is an awesome deal for shareholders and will help Osicom reach it's proper fundamental valuation. I am expecting, based on most rights offerings I've observed, that Osiocm will retain a certain portion of the spinoff on its own books as a marketable security. Osicom will be infused with a significant amount of cash as a result of the rights exercise. DPI will get the much needed capital as a result of the new IPO'd stock. So, Osicom will likely get the benefit of a major cash infusion from the rights that can be used to go full steam with the GigaMux, hold an asset on it's books in the form of a marketable security at a proper market valuation which will put a floor on Osicom's stock price, and allow DPI/NET+ARM to have a significant amount of cash from the IPO to really beef up its marketing staff to fully promote the NET+ARM to its fullest potential. On top of that, shareholders of Osicom have the right to buy the potentially hot IPO of DPI/NET+ARM at a significant discount to its IPO price. My suggestion is for concerned shareholders to do some research on rights offerings and understand how beneficial they can be. The above is my opinion and research I have done on these types of issues and does not necessarily mean that Osicom's spin-off will be spun off the same way as others. Your decision on buying and selling should be based on your own research and analysis, but I sincerely hope this helps clear up some of the confusion on this board. I am in favor of this deal 100% and in fact, I added more shares to my position yesterday based solely on this news.