Fudge. That's what I get for talking from memory.
My apologies. The percentage is, in fact, 17%.
The $1700 sales figure probably doesn't reflect
the amount of cash flowing around the place. If
I read the prospectus correctly, there was a
lot of 'in kind' property swaps for equipment,
etc., going on. This is kind of normal, in
a spin-off situation, until the spin-off gets
on its own two feet, financially. Keeps the
corporate tax sheet clear, among other things.
Cheers,
-- DaveN
-----Original Message-----
From: Erik Andersen [mailto:[EMAIL PROTECTED]]
Sent: Monday, March 27, 2000 5:04 PM
To: Dave New
Cc: [EMAIL PROTECTED]
Subject: Re: RT Linux on StrongArm
On Mon Mar 27, 2000 at 01:14:31PM -0800, Dave New wrote:
> To be more than pendantic (8-), 34% of Lineo is owned
> by Caldera. Not exactly a breakaway. More like
> a strategic profit center launch. If Lineo tanks it
> doesn't reflect too badly on Caldera's stock. If
> it flies, Caldera makes a nice tidy sum. Also,
> Lineo owns a little more than 3% of Caldera's stock.
> The whole thing was set up as a stock swap. It's
> in Caldera's IPO filing. Makes for interesting
> reading, that.
Yup. But it was only 17% (which is not a majority in my book).
According to page F-26 of CalderaSystems' prospectus, CS bought about 3.25
million shares of Lineo in return for about 1.25 million shares of CS, which
constitutes "approximately 17% of Lineo's outstanding common stock". It is
also mentioned on page 28 of CalderaSystems' prospectus, and that Ray Noorda
is
a majority stockholder for both Lineo and CalderaSystems. Rumor has it that
the two companies were beginning to not play nicely together (from the
prospectus, it is clear that CS wants to move into embedded in a big way)
and
the majority stockholder decided to enforce some cooperation.
The prospectus also mentions on page F-24 that sales to Lineo for the year
ended 1999 totaled $1700. Hope they didn't spend it all in one place. :)
-Erik
--
Erik B. Andersen Web: http://www.xmission.com/~andersen/
email: [EMAIL PROTECTED]
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