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

To: Maya who wrote (41151)	5/15/1999 6:00:00 PM
From: Black-Scholes	Read Replies (2) \| Respond to of 50808

Dear CUBE thread, Please understand one thing: C-Cube does not need cash! My God. CUBE management is very fortunate to have shareholders that choose to be in denial about the 1/4 billion dollar cash balance. Second, I think CSCO makes the most sense. Please keep in mind that for any of the mentioned potential suitors, CUBE represents a "minnow" acquisition. Ironically, a significant "sweetner" behind any acquisition of CUBE is their cash. For example, say CSCO offers $50 a share for CUBE. I think we all agree the pressure from shareholders to accept would be overwhelming. The transaction takes place - a $2 billion dollar transaction (most likely in the form of CSCO stock). After the deal is done, guess what, CSCO pockets a 1/4 billion in CASH!!! (1/8th the total purchase price) It would be as if CSCO paid $44 a share. Then CSCO can sell C-Cube's semiconductor business to whomever for probably more than 13-15 times the semi division's earnings (lets say conservatively that'll fetch $800 million). Wow, CSCO just got the hottest property in the hottest emerging market for roughly $1 billion in stock! Plus they get a 1/4 billion in cash to boot. This is precisely why I think, and have heard, that there are multiple suitors. Again though - CUBE does not need cash...