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

To: Francis Chieh who wrote (5186)	7/8/1998 5:55:00 PM
From: Smilodon	Respond to of 7841

They could take it public, but not spin it off to shareholders. In that case, a certain percentage of the stock would be held by the public, and the majority by SEG. SEG would potentially sell stock periodically to raise cash. As long as SEG held more than 51% of the company, they would still pool results. The reason to do this is to unlock hidden value. Essentially, the earnings of a software company is worth more than the earnings of a disk drive company. So raising equity is easier if you sell stock of the software group instead of a combined entity. Eventually, they could distribute the shares to the public. In that scenario the market would probably adjust the stock price accordingly on the date of record. I doubt this will happen in the near term. Hope this helps, Archer