Conference 7.286::digital

    It's AT&T , and Fallotti will be our new Bob or Ken. Call it PCF II or
    PCF strikes back . Or maybe SWATCH and we will finally make Digital
    wrist watches with Alpha laser logo.

    				Well I. Nformed.

    "Rumour Roundup" in the February 7th issue of Digital News & Review
    says an MCI exec told one of our people we'd soon be working for them.
    
    Besides, the AT&T rumour is heard about every 2.5 years.  Sounds like
    someone is "rounding up the ususal suspects."
    
    Now, if we want to launch a takeover rumour, why don't WE buy out
    someone?  We could do that in lieu of next quarter's reorganization!
    :-)
    

re: .2

>    says an MCI exec told one of our people we'd soon be working for them.


This is rich!

-Jack

         <<< Note 2904.3 by TOOK::DELBALSO "I (spade) my (dog face)" >>>

re: .2

>    says an MCI exec told one of our people we'd soon be working for them.


This is rich!

-Jack

Only one thing concerns me...does that mean we get free long-distance?

    only to other companies in our "Friends and Family" circle

    On a more serious note, what financial indicators, marketplace
    conditions, or global economic factors, make you think we are an
    attractive buyout company?
    
    In my certainly humble opinion, we still have too many unprofitable
    businesses to fix or sell.  On top of this our cash cow has taken
    an early retirement.  
    
    As I see it, the time is not right for a takeover.  Once we become
    more focused and show true signs of returning to profitability,
    perhaps the number 2 computer company, ( HP ), would be interested
    in us.  Just a thought!

    Corporate raiders don't always go by logic.  Sometimes you're worth
    more as scrap metal than you are as an ocean liner.  There have been
    several cases of corporate raiders buying out companies largely with
    their own money.
    
    For example, if your company has a well-endowed, conservatively run
    retirement fund, new management can come it and start making changes. 
    They make newer, less conservative assumptions about what interest
    rates will be over the years, and voila! The fund is now OVER-funded
    and there is free cash.
    
    That is supposedly more difficult to get away with today, due to new
    and tighter oversight by the government.  But still, it's an example of
    what kind of dangers are there.
    
    What IS the market value of our company today?  (Current market share
    times number of outstanding shares).  Then, how much would you get by
    spinning off our PC arm?  Our chip foundries?  Our software
    applications, bit by bit?  Our service and support business?  Our
    buildings.  Someone might figure those components could be sold for
    something exceeding the current market value.
    
    In selling off those components, the corporate raider has only to
    convince a buyer that the subsidiary will now make money on its own,
    because:
    -- its product or service was incompetently managed, or marketed
    -- it now won't have to carry a big corporate overhead
    -- it will be focused tightly on its main business, be closer to the
    customer, be able to react quicker to market conditions
    --it won't be tied to a proprietary image, and will be able to sell its
    product across all platforms and vendor environments
    -- it can be merged into the product line of a former competitor, where
    the products now can be complementary, without the need of two sales
    forces
    
    And so on, and so on.
    
    Logic would say that none of this would happen, but a corporate raider
    has great faith in his ability to make something out of a bowl of mush.
    He sometimes doesn't have to convince real buyers of these facts -- he
    just has to convince Wall Street that he can convince real buyers, and
    he gets the buyout funded.
    
    Even if he is wrong, he can "greenmail" the company.  Fighting off
    takeovers can put a company so far in debt that it struggles for years.

    .-1:
    
�    Even if he is wrong, he can "greenmail" the company.  Fighting off
�    takeovers can put a company so far in debt that it struggles for years.

    Pr1me might be a good recent example.

As an ex Sperry employee I remeber that one of the attractions that brought
about the hostile takeover by Borroughs (and created UNISYS) was the fact
that Sperry had around  $2billion in the bank in cash.  That reduced the 
final liability by quite a bit.

I think Digital has around $1.1Billion in the bank now.  So what would be
the discount?

How about if we take the money and make a bid for Oracle????

    Re. .8
    
    "Logic would say that none of this would happen."
    
    Whose logic?  Your arguments seem impeccable to me.  Perhaps you are
    speaking ironically.  Your five arguments could well be applied to 
    each of our product divisions.  This would eliminate the nonsenses
    where, because we insist on bundling product and services in our bids,
    we narrow our chances against a best-of-breed bidder such as EDS and
    end up winning nothing.
    
    In the U.K. we have an example of a conglomerate, Apricot Computers,
    which split up and where the parts are greater than the sum of the
    whole.
    
    I really would be interested in knowing why you think this is not the
    best way to go.
    
    dave_P

    Actually, I've long thought that it would make perfect sense for a
    conglomerate of, say, Microsoft, Intel, AT&T and Western Digital to buy
    all outstanding shares, and split off/absorb the parts of DEC they
    could usefully absorb, and scrap the rest.
    
    Laurie.

    	If it made that much sense, then somebody would have done it by
    now. Typically, this happens when a company has reached its low point
    and show signs of recovery and growth. Then it's a more reasonable
    takeover target.
    	The "scrap the rest" might cost big bucks. The real estate
    holdings, mostly in the GMA, aren't worth diddly (look at what the Wang
    towers just sold for). Laying off all the people would be expensive.
    And just what parts of the company would you "absorb" which would more
    than make up for this expense? 
    	Maybe it's just me, but I don't see this as much of a threat...at
    least, not yet.

    
    re: .12
    
    I guess Western Digital would get our name.
    
    

I forget how I heard it the first time, but here's my version:

    Q: What's the difference between Digital and Jurassic Park?

    A: One's an isolated island with dinosaurs running amok wrecking 
       the place, and the other's a movie.


...petri

    re: .17
    
    Great news!
    
    I can see it now...
    
    
    Thursday June 16, 1994
    
    Digital Board of Directors announce sale of Digital to Disney. In a
    surprise move, the BoD announced that the new CEO of Digital will be
    Goofey. A deeply disapointed Mickey Mouse announced that he would sue.
    
    
    
    							Thanks,
    							djg...

      "We would  also like to point out that there is no truth to the
      rumour that Mickey Mouse is wearing a Bob Palmer (digital) watch!"
        
        

	Maybe it should be :

    A: One's an isolated island with dinosaurs running amok wrecking 
       the place, and the other's a company.

    geee...
    I thought for a moment that we'd been bought out by Tobin's
    
    (the ones running the PKO caf?)
    
    tony

    and the other version of the Jurassic Park/Digital joke....
    
    What's the difference between Jurassic Park and Digital Management?
    
    In Jurassic Park, the dinosaurs move.
    
    You've gotta laff

    Isn't there another joke about Digital and a Boy Scout troop?

	... and Digital?



	The BSA has adult leadership!

    (AP) - Disney makes official its purchase of Digital Equipment today. 
    Michael Eisner explained to reporters in an afternoon press conference
    that "The purchase of Digital Equipment is in the best interest of all
    parties and represents months of difficult negotiations.  The terms of
    the deal include trading EuroDisney for Digital Europe, as well as
    various stock options".
    
    Eisner sees immediate profitability by converting the Mill into a water
    park, charging all customers $20 for parking, and charging just one
    price at the door for a week's pass for any customer.  Additionally,
    former Digital employees will be required to wear various Disney suits
    on the job.
    
    "This isn't a big deal to me", says Jean Le Fume from Valbonne.  "I
    have been used to working for clowns and would rather work as one, instead.
    I see it as a promotion to management, no?".  Other former employees
    clustered around Jean nodded as he stated this.
    
    							

    
    
    	You need something to do??????!!!!

    
    >	You need something to do??????!!!!

    Yeah, is your sister home right now?  What's her number?  Whoops, here
    it is on the payphone wall!
    
    						xo :^]

Re. Disney buyout -
I guess they feel EuroDisney isn't losing enough money. :-)


(Yes, I know the whole thing's a joke.)

    
    
    	No problem!  That's the kind of responce I figured I get
    	from him. It matches every other comment from him.