Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: zebraspot who wrote (181)	4/14/1999 2:18:00 PM
From: Robert Sheldon	Respond to of 270

T buys TGNT? Not again! At this rate, shareholders of Associated Group(AGRPA/B) --the controlling owner of TGNT-- will just about end up owning nothing but T stock - after having AGRPA/B's large TCOMA holdings swapped for T shares earlier this year. You took the words right out of my mouth! No matter, The shares of TGNT can be bought via AGRPB at an approximate 52% DISCOUNT. To boot you also get shares of T and Liberty Media at the same discount to NAV. BUT, the discount is actually larger due to other holdings within AGRPB that the market is ignoring. By my calculations, that could widen the discount by as much as an additional 10%.

To: zebraspot who wrote (181)	4/18/1999 8:16:00 PM
From: Tecinvestor	Read Replies (2) \| Respond to of 270

Paul, I respectfully disagree with your analysis regarding a potential T acquisition of AGRP's interest in TGNT. As I view it, AGRP is trading at a forty percent discount to NAV, excluding the value of TruePosition. The reason cited for the discount is the embedded capital gains problem attributable to AGRP's holdings in T (formerly TCI). If AGRP were induced to sell its controlling interest in TGNT to T, perhaps an accommodation could be worked out with T or with the shareholders of AGRP to address and eliminate the embedded capital gains problem AGRP allegedly faces. This could, conceivably, allow AGRP's shares to trade at their full value, which is in excess of $90 per share excluding the value of TruePosition and the premium T would have to pay AGRP to acquire effective control of TGNT. Succinctly, if T were to acquire AGRP's forty percent interest in TGNT and, in the process, an arrangement could be made to solve the embedded capital gains problem, the shareholders of AGRP would find themselves in an enviable position despite the fact that AGRP's portfolio would then consist largely of T shares plus the present unrealized value in TruePosition. If such a scenario were to play out and I, as a shareholder of AGRP were now sitting with shares that were now trading at more than $100 per share, I might still decide to hold my stake in AGRP depending upon what I perceived to be the value of TruePosition. If not, I could liquidate my position in AGRP at its full value for a hefty profit. I say all of this irrespective of the fact that you and I have a different view of value of TruePosition. Comments, please.