Thursday, December 08, 2005

Update: Zapata Corp

An interesting announcememt today from Zapata. Seems that the company has decided to sell it's 58 percent stake in Omega Protein (Ticker: OME). This on the heels of the sale of the company's stake in Safety Components (Ticker:SAFY), which put nearly $50 million into company coffers. With Omega's current market cap of $160 million, Zapata's stake is worth about $93 million, although a large stake discount might apply. What we don't know, however, is Zapata's cost basis in the shares. What are the Glazer's (owners of a majority of ZAP) up to? With no operating businesses remaining, what will they do with the cash? As a shareholder, I am getting concerned. Both Omega (+8%) and Zapata (+5%) were up today on the news.

Please see our prior Zapata posts.

*The author has a position in Zapata. This is neither a recommendation to buy or sell this security. All information provided believed to be reliable and presented for information purposes only.

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