Forum Archive Index - December 2000

[Chris Tse <christse@internet.co.nz>]

G'day Grant

I have no idea who Jeff Dittus has in mind when he talks about
"combine with other cash rich public companies with beaten down
market values". 

With the dramatic fall in tech valuations since April, I guess there may
be a number of companies whose market cap has fallen below NTA (as in
ITC's case) or even below their cash reserves, and this would present an
opportunity for ITC to enlarge it's capital base and funds under
management.

It may be an opportunistic way of gaining the critical mass they need to
be an effective VC company, but I would caution : (i) "cheap"
assets is not synonymous with "quality" assets; and (ii)
mergers involve a coming together of people and culture, as well as
company assets, and if the former two aspects aren't compatible then
problems may arise.

I guess we will just have to wait for the announcement to find out if
something is indeed cooking, but like you, I would generally look at it
as a positive outcome for shareholders.

Chris



At 12:10 18/12/00, you wrote:
> Chris,
>  
> Very well said...
> I couldn't agree more with all of your points
> raised.
>  
> One of the more interesting issues to come out of
> last week's Q&A is the suggestion from Jeff of a merger with a
> "cash-rich public company".
>  
> Reading between the lines here, I would say
> something is in the works.
> We'll just have to wait and see what form it will
> take.
>  
> If it is a stable company with a good track record,
> the increased base of capital under management can only be good news for
> shareholders as long as management don't "take their eye off the
> ball" as you pointed out.
>  
> Merry Christmas and a prosperous 2001 to
> all.
>  
> Cheers
>  
> Grant Keymer
> ____________