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 : AT&T -- Ignore unavailable to you. Want to Upgrade?

To: Robert Kirby who wrote (1641)	9/3/1998 11:29:00 PM
From: David C. Burns	Respond to of 4298

Assuming you had enough T shares to get at least one share in the spun off entity, yes. If the ratio of shares in the spin off to T holdings gave you a fractional share, you would get cash.

To: Robert Kirby who wrote (1641)	9/4/1998 3:14:00 PM
From: Raptech	Read Replies (1) \| Respond to of 4298

Robert: In the case of T, yes. Then current holders received, proportionate to their T holding and the distribution ratio, shares of NCR and LU. NCR was a bomb for T shareholders, but LU more than made up the difference. Further back T shareholders were offered an option to receive shares of the baby bells after the breakup. If my memory serves me there were many options to acquire whatever % of each baby bell you choose. It's not a gimme! A company could configure a spinoff for a cash only distribution. Many years ago I owned TEP (now UNS) and they did a spinoff of a company called Alamito for cash, and then several of the top officers of the parent company became the controlling shareholders of the spinoff in a leveraged buyout. It was a lousy deal for shareholders, but great for the officers. A class action accomplished nothing. Rap