Re: Just a thought on who's going to buy DevCo
- From: "Karl" <kthompson@xxxxxxxxxxxxxxxxxxxxx>
- Date: Mon, 31 Jul 2006 10:46:53 -0400
Devco will be PRIVATELY held.<<<<,It has been stated here that
That's too bad. Devco strikes me as being a perfect short opportunity......
"Mark A. Andrews" <KE4MA@xxxxxxxxx> wrote in message
news:44ca3d41@xxxxxxxxxxxxxxxxxxxxxxxxx
Phil Mickelson wrote:
I have always believed that Borland was going to find it difficult to get
a major player to purchase DevCo. I could be very wrong, and I will
state again that I haven't been involved in any meetings. However,
everything that has been said has been couched in very careful terms.
Not once have they said there is a buyer. The have talked about
divesting the IDE group.
Where have you been? Several of the DevCo mgt team have said that the
buyer will be announced very shortly. The President of Borland has said
its just a matter of finishing the deal.
Also, notice the big names coming back. Sure, some of it could be for
old times sake. But, I don't believe it. What if the new buyer proves
to be just as bad as Borland if not worse? Think CA, for example. There
is a good answer, however, what if this is going to be a LBO?
Maybe they're coming back because they realize that Devco is going to
become the company that Borland could have been.
Think about it, this answers many of the questions. If there was an
outside buyer they would probably have to disclose the name at some point
in the process (prior to now). There are so many rules with SarBox that
I suspect this is one of them. If not, why would GM be so open about
talking to Nissan?
That's because GM is trying to BUY a competitor, not because it is
spinning Nissan off as a separate entity. It has been stated here that
Devco will be PRIVATELY held.
Also, if you knew you would be an owner of the new DevCo, you could have,
at least, a good reason to come back. You would be substantially, in
control of your own destiny. This also explains what's taking so long.
I'm sure they're (both sides) going to have problems with financing, so
it would take some time to get it all arrainged. Further, they wouldn't
want to announce anything because that would make the negotiations that
much harder. And, you never can tell, a real buyer could come out of the
woodwork at the last minute.
It hasn't taken very long at all in terms of business. Any time a deal
this large ($100 million plus) you have to get everyone on both sides on
board and that means lots of lawyers and due dilligence, including making
sure the value is correct and a business plan (and management, finance,
IP, etc.) is in place for the new company. six months is no time at all.
What about the comment that there will be cross selling of products? How
else could this be guaranteed except through a LBO? Borland is working
hard to get the money they want, they probably, IMO, make this a
requirement of the deal.
It's called a contract. Borland and Devco will have in a contract that
they will cross sell each others products for a specified period of time.
This is not rocket science, nor conspiratorial. Companies do this all the
time.
I would say one thing; if I'm right, I'd be shorting the stock every
which way I could. I will state for the record: I don't own any Borland
stock, not one share, never have, never will. If I'm right, when this
gets out, I believe it will be a net negative for the company. This is
very similar (on a much smaller scale) of the GM - Delphi spinout. GM
basically agreed to be held liable if the whole mess went down, which it
did. And, it's now come back to roost on the parent.
????? Exactly how is GM being held liable?
I could be all wet. Or, it could work perfectly. All sorts of options.
Get a large towel; you're soaked from head to toe.... :-)
Mark
.
- References:
- Just a thought on who's going to buy DevCo
- From: Phil Mickelson
- Re: Just a thought on who's going to buy DevCo
- From: Mark A. Andrews
- Just a thought on who's going to buy DevCo
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