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

To: Night Writer who wrote (46733)	2/2/1999 5:03:00 PM
From: Loki	Read Replies (3) \| Respond to of 97611

Night Writer...200mil shares is a ton of authorized shares for Alta Vista. 1 share for every 18 CPQ shares would be approx. 95mil shares. At $15/shr one is removing CPQ value of $1.4 bil from CPQ stock. The balance is 105mil. To retain 50%, would be a 5mil float, which at 15 would yield $75mil. CPQ wouldn't do this. CPQ management is not thinking short term shareholder value for Alta Vista decision. No shares, cash for CPQ (to pay DEC deal), maintain control of Alta Vista (clear by Schrock's appointment) and bolster earnings for next quarters thus helping CPQ share value is the strategy. In case no one has noticed CPQ is putting on a smile when there are still major concerns not yet resolved. Loki