question for amex, page-19

re: i think it will recover fast. The ethics of TXT also extends to its shareholders and the relationship with TZL ensures a healthy return for those TXT shareholders.

This entire "sale" looks like a done deal to me. TXT would have ensured they had everything arranged in advance in terms of locking in customer supply and negotiating in principle deals for a seamless transition. The sale is all about an effective in-demand float of a sizeable entity containing the elements of future growth and supported by the bank-banked assets of TFS. Such a joint TZL/TFS entity will already be backed by banks and underwriters. Just wait a couple of weeks for the news to leak out. TXT will have the inside running in selecting the size of the parcel they want in the new TZL, ie 20% (probably all that is wise and available since the whole idea is to lock in new mega companies like IBM, Airbus, GM and the like who will all be wanting a piece of the action. Excluding them would be counterproductive so no-one will/should get more than 20%. That also ensures TZL shareholders will be subject to increased demand from these companies ahead of the float since we (collectively) are likely to have 20% of the new entity. It will be this 20% that will be subject to the rapid revaluation in advance of the float but a steady increase post float will oalso occur as the unwanted TFS divisions are then sold in a block to a company/companies willing to expand their share of the fasteners market. That might be worth $600-800 M out of a combined $1.5B say. The more I look into it the more I like it. The Microsoft people onboard are not there for show. This is all about influence and connections with appropriate people in head office and as such TZL management are about 1-2 years ahead of us. Given that 50% of TZL is held by 20 parcel holders we can be assured that management will also be highly rewarded and so (proportionately) will we be.