Forum Archive Index - August 2000

[Chris <cd@ak.planet.gen.nz>]

Brian,

When considering the Capstone value on the FEG books it should be 
remembered that FEG are locked into this interest and cannot readily 
dispose.  I think it is at least a year, others may clarify for me.  

Consequently, any purchaser must abide by the same standstill agreement 
and therefore unable to realise value if it chose.  The volatility of 
CPST necessitates a generous discount in valuation, maybe more than 50%. 
If puchasers don't bite on FEG inclusive of CPST it may be split off as a 
seperate entity for FEG shareholders but of course the standstill 
continues to apply.

Like you Brian I am looking for more out of my FEG interest.  I think 
around 900-920 max is the sale level.  Things are definitely hotting up.

CD  

>Capstone closed @US$78 today. Up US$10.That must make FEG's share worth 
>close to 1 billion dollars.Any bid for FEG would surely need to be north of 
>$10 a share.As a shareholder that is the least I would expect to achieve for 
>my shareholding.At $8 they must still be worth buying(If you can still get 
>them at that price)

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