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

To: Nadine Carroll who wrote (45344)	1/26/1999 2:58:00 PM
From: Elliot	Read Replies (1) \| Respond to of 97611

I would be interested to find out if the spinoff and its terms have to be put up for shareholder approval. For example MCD announced a 2 for 1 split today. Last year I received a proxy to approve the issuance of additional shares. Does anyone know?

To: Nadine Carroll who wrote (45344)	1/26/1999 3:00:00 PM
From: Jim McMannis	Respond to of 97611

Yes, but shareholders can trash CPQs stock if they smell a rat. And they will. It is Compaqs responsibility to enhance shareholder value. Making a big chunk of change on an IPO, that is held internally isn't near as good for shareholders as giving them shares in AV. LU is a case in point. First thing that hapens is everyone that gets shares does is rounds up, adding shares to get round lots. This drives the price up. Up to the point of a spin off, people will buy CPQ to get in on it. Stock price goes up. Lets say Compaq just offers an IPO. The average investor has a snowballs chance in hello of getting any shares before they run up. One of the reasons I hold CPQ is the value of AV and the anticipation of getting spin-off shares. If that doesn't happen and only an elite few get the shares then my CPQ shares get S O L D. Jim

To: Nadine Carroll who wrote (45344)	1/26/1999 3:52:00 PM
From: rudedog	Read Replies (2) \| Respond to of 97611

Compaq does not have to ask shareholders' permission to sell off divisions of itself But the officers do have to go before the board, which ought to represent the shareholders - the directors are elected by the shareholders, after all. CPQ has a very strong board, and the chairman, ben rosen, is known for taking no nonsense. He is after all the guy who fired founder rod cannion. He is a pretty strong proponent of shareholder value, that was the primary reason for cannion's ouster.