Conference 7.286::digital

3092.0. "Business Week article 5/30/94" by ANGLIN::KILSDONK (AI vs Natural Stupidity) Fri May 20 1994 16:53

    Business Week  May 30, 1994 edition p. 10
    (reprinted without permission)
    THE DEAL MILL
    DEC BRACES FOR A LETDOWN  AT ITS TAG SALE (<their caps/shouting-not mine)
    
    
    	Troubled Digital Equipment wants to sell off some major business. 
    CEO Robert Palmer figures this will make it more focused and cut costs. 
    But the computer maker, which has lost $4 billion in the last four
    years, has at least one problem: It may have to swallow unsavory
    prices.
    	Digital isn't in a strong bargaining position.  And there are snags
    with individual candidates for divesture.  Take Digital Consulting, a
    $2.3 billion management and systems integration adviser.  Without
    parent Digital to funnel business its way, the consulting arm has less
    value.  Insiders say the company recently hired First Boston to
    appraise Digital Consulting-and was dismayed to hear a low valuation. 
    It got a second opinion from Arthur Anderson-and got the same result.
    	Digital may have better luck with small outfits, such as it PC
    software distributor, 800-Software.  Insiders say the profitable unit
    has already attracted some suitors.  There's no sign of interest yet
    for Digital's independent disk-drive operations, which potential byuers
    had passed over a year ago.  The business' drawback: Analysts fear
    that the personal-computer market, after a hot streak, may have peaked.
    A company spokesman declined comment.            by Gary McWilliams
    
    
    

    some additional comments
    1.  Its on page 6 of the 5/30 Business Week  Sorry about that  %^)
    
    2.  Wasn't Gary McWilliams the guy who wrote the last Business Week
    article, in which BP was dipicted next to a red wall.
    
    3.  Does it make sense to get a second opinion from Arther Anderson - a
    likely competitor to a spun off DC.  How would you value a potential
    competitor if given the chance?   
    
    Frank