Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Windseye who wrote (28698)	7/9/1998 10:07:00 AM
From: Tony B	Respond to of 97611

If CPQ were to spin off AV, how would this be done? I assume all current share holders would get a piece but how big a piece? Consider: CPQ has ~1.5 Billion shares outstanding. If you got one share of AV for each share of CPQ owned, this would value AV at 1.5 Billion dollars if the shares traded at $1/share. ( math major <g> ) At $10/share that would be 1 AV share for 10 CPQ shares. Then when you consider, like someone mentioned earlier, that CPQ would retain 30-50% ownership, this reduces your ratio even more. I agree with others here- spin it off while Internet stocks are HOT. But the windfall to shareholders may not be as BIG as some may think as there are a lot of shares out there. Anyone, please feel free to shed some light on how the "mechanics" of a spin-off would take place. Thanks Good Luck TB