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To: Rob S. who wrote (17003)	9/12/1998 1:56:00 PM
From: H James Morris	Respond to of 164684

From Sept 21 issue of business week page 132. Subject When a ' Carve-out' is a good deal. < But sometimes, the parent itself becomes more valuable. Take Barnes & Noble, which hopes its online unit will command a market multiple akin to the more than 10 times estimated 1998 revenue that online leader Amazon.com's $4.4 billion market value suggests. Apply that same multiple to Barnes & Noble's Internet operation, and it would fetch a market value of at least $500 million. That's more than one-quarter of the parent's total capitalization, even though it contributes less than 2% of total sales. Look at the numbers, and you can see how the market's appreciation of Internet operations has become grossly inflated. Knowing that, it's hard to miss the point that owning the parent would be a better bet than buying the carved-out shares.>