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

To: Red Scouser who wrote (53530)	3/16/1999 8:56:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

Neil: It is proper that spin-offs being created for corporate re-structuring or regulatory or other systemic reasons properly give the shareholders shares for the full nominal value of the spin-off entity, less a percentage to raise cash to pay for the spin-off and provide some operating cash for the new entity. That is not the siuation with AV. That spin-off is to raise substantial new capital to fund a new business. It would be self-defeating to give shares to existing CPQ shareholders especially as CPQ is retaining on its balance sheet, for the benefit of its existing shareholders, a large percentage of the equity in the new spun-off AV. I would be disappointed if CPQ gave into pressure to give away shares in AV to CPQ shareholders. However, I think it is perfectly consistent to give CPQ shareholders preferential treatment in tendering for the AV shares at the IPO price. This way, CPQ gets its money and the shareholders get shares at a price which will be multiplied very quickly by the market. I think CPQ will do the latter and it is only question of how many shares and how they are made available to shareholders and at what price. +++++++++++OT++++++++++ The Reds are a write-off. The defence is appalling. I wonder what Thompson is doing - it was his hob to make it better but it is getting worse. Even Song played badly last Saturday and it looks like he will be gone a lot every year on international duty. Apparently the best players on Saturday were Gerard, the teenager from Whiston, Owen and Fowler. Local lads. I'm a bit nervous of Houllier bringing in a lot of foreigners who will not be as committed and not as good as some locals. We need a few Scots. Hopefull the new Academy will provide a lot of talent in the future.