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CNET: Andover.Net deal makes some wealthy, others disappointed

Feb 04, 2000, 00:51 (1 Talkback[s])
(Other stories by Dawn Kawamoto, Scott Ard)

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"The speed at which Andover.Net moved from IPO to takeover target amazed some analysts.

"This is unprecedented," said Richard Peterson, an IPO analyst with Thomson Financial Securities Data... Usually an IPO is a long-term process where you build shareholder value. But they didn't give it enough time to put the foundation down on shareholder value."

"Bruce Twickler, Andover.Net's 53-year-old founder and chief executive, will see his 12.6 percent stake valued at $131 million. Based on his ownership stake and the $60 million in cash that VA Linux is paying, Twickler will receive $6.7 million in cash and the remainder in VA Linux shares."

"Adam Green, the company's chief technology officer, will see his 2 percent stake valued at $20.8 million..."

"Although Green and Twickler are netting big returns, some individual shareholders who bought shares near their high feel they have been left holding the bag."

Complete story.

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