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

To: JDN who wrote (59123)	4/21/1999 10:40:00 AM
From: rupert1	Read Replies (5) \| Respond to of 97611

JDN: Thanks for that. I'm not sure I understand. AV is currently a wholly-owned subsidiary. When it IPO's, the capital raised by shares sold at the IPO will not go to COMPAQ but to AV - isn't that right? The purpose of the IPO is tp provide this capital to AV as a public company. If I am right, how can this be accounted for on CPQ's books as a realisation? Irrespective of that question, if the IPO, itself, raises, anything over the total cost to COMPAQ of purchasing AV (and it is variously estimated to raise $1-2 billion depending on the percentage of shares floated), will that "profit" be subject to taxation even though COMPAQ does not actually receive the IPO funds?