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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Joo who wrote (4315)	1/15/1999 1:04:00 AM
From: Craig Freeman	Read Replies (1) \| Respond to of 60323

Daniel, only SEG can take over SNDK. Anyone else would get killed. "On April 21, 1997, the Company adopted a shareholder rights plan (the Rights Agreement). Under the Rights Agreement, rights were distributed as a dividend at the rate of one right for each share of common stock of the Company held by stockholders of record as of the close of business on April 28, 1997. The rights will expire on April 28, 2007 unless redeemed or exchanged. Under the Rights Agreement, each right will initially entitle the registered holder to buy one one-hundredth of a share of Series A Junior Participating Preferred Stock for $65.00. The rights will become exercisable only if a person or group (other than Seagate Corporation, which is permitted to maintain its 25% stake in the Company) acquires beneficial ownership of 15 percent or more of the Company's common stock or commences a tender or exchange offer upon consummation of which such person or group would beneficially own 15 percent or more of the Company's common stock." Craig

To: Daniel Joo who wrote (4315)	1/15/1999 6:54:00 AM
From: Ausdauer	Read Replies (1) \| Respond to of 60323

Daniel, Thanks for going over the math. You have delivered such a succinct message it almost makes investment banking sound as simple as obtaining a second mortgage. Whether SNDK is being eyed over or not, it is clear from your analysis that it is an attractive candidate should the situation arise. This represents yet another intangible that could fuel speculation and help to prop up share price. The fact that Seagate is recovering from the 1998 debacle, that it has already acquired a large chunk of the float and has the assets to acquire more, that margins for rotating media are falling (leaving Syquest in its wake) and that flash memory will take its place in every "digital day", it at least seems possible that we have an insurance policy in our back pockets. The partnerships with Seagate and Siemens will help guide this powerful little tugboat through the treacherous waters cluttered with immense ocean liners, slow moving oil tankers and half-sunken barges. Who knows, we could even sink a titanic along the way. Ausdauer (22 13/16)