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Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant? -- Ignore unavailable to you. Want to Upgrade?

To: Carl R. who wrote (3988)	10/22/1998 9:52:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 4697

Carl, it does not really matter if Veba decides to act like a floorless robber baron, and sell in the open market existing shares to bring the price down (since they are an insider, they have to account each month by the 10th of the month of those activities), since the public will get rights at exactly the price Veba will get, thus allowing the public to keep its 47% (or so) percentage. I do not think it is in anyone's interest, including Veba, to do that, since the book value of the remaining shares will decline as the right price is forced lower. Since you can expect a big chunk of the public "rights" holders to be "newcomers", (buying rights cheaply on the open market from holders deciding not to invest more in the same company), they will cause the "newcommers" to get a bargain on their account. Veba's interest (as owner of 53% of the shares) is to get this rights offering at as high a price as possible, and they may even engage in "market support" activities to achieve that. It would have been quite different if the debt they granted was convertible at a variable price. It seems that Veba has not yet learned the most recent engineered financial instruments of the street, lucky for us. Zeev Zeev