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

To: rudedog who wrote (45660)	1/27/1999 12:36:00 PM
From: rupert1	Read Replies (1) \| Respond to of 97611

rudedog: I agree. Currently, I would not like a give-away of shares to investors or to anybody. However, there comes a point where COMPAQ with its Underwriters, decides what the IPO price is going to be. At the point, investors should be given the opportunity to buy at the IPO price. The quota should be related to the number of COMPAQ shares held at some specified date. We all know it will be a license for the investors to print money - the share price will shoot up on opening day. Some might sell others would hold for a wild internet ride. The inflated share price of the IPO will eventually be used by Alta Vista to finance its acquisition of other companies. Alta Vista will be in a position to issue new stock, as time goes on. It would be interesting to see what value CPQ, the parent comapny, will put on its AV shareholdings in its Balance Sheet once the wild ride begins. It will have to show the nominal value of the stock, but it will probably have some means of discounting its value to satisfy nervous auditors.

To: rudedog who wrote (45660)	1/27/1999 2:00:00 PM
From: tonyt	Respond to of 97611

>I think CPQ owes it to the long-suffering shareholders to give them a shot at >the initial AltaVista IPO 'long-suffering shareholders'? Didn't CPQ hit an all-time high today? Didn't CPQ double since October? Anyway, if its the 'long-suffering shareholders' who should be rewarded, then maybe the IPO should only be offered to folks who have held for more than 1 year :o)

To: rudedog who wrote (45660)	1/27/1999 11:25:00 PM
From: Harry Landsiedel	Read Replies (1) \| Respond to of 97611

rudedog. Re: AV IPO. Would it be better for cpq and shareholders to follow a two phase process in spinning off AV? Phase I: A modest percent of shares in IPO with cpq holding the majority. Phase II: Say a year later when AV has a track record spin some shares off to current shareholders. This, to me, has several advantages: 1) It limits the number of shares in IPO, which will give the price an an even greater upward tilt. Smaller supply will heighten demand. 2) By holding majority of shares, all long term shareholders benefit, not traders. Encourages institutions to buy and hold cpq to get the possibility of AV shares in the future (which you noted would be a plus). 3) Gives cpq more shares as "currency" to do deals which will increase AV's appeal to consumers and investors long term. 4) When cpq spins off some shares to shareholders say a year or so after the IPO, shareholders get a higher valued entity, in terms of price and a company with a clearer track record/roadmap for the future. This IPO with a subsequent spin-off to shareholders was how Sears spun off Allstate, according to a friend. It may work with cpq too, since it could do the best job rewarding long-term holders. HL