Venture Capital Unit Fuels Comdisco Profit

A mini-CMGI?

Comdisco Inc., a supplier of leased computers and management services, said Wednesday that it expects better-than-forecast profit because of the success of its venture-capital unit, adding that it will move ahead a plan to issue a tracking stock for the division.

The Chicago company expects profit of 35 cents a share--40% higher than its previous forecast--for the quarter ending Dec. 31.

The Comdisco Ventures unit has invested more than $1.7 billion in 675 venture capital-backed companies since 1987. The value of publicly traded securities owned by Comdisco has more than doubled since Sept. 30 to more than $400 million.

Comdisco said it will file for regulatory approval in January of its plan to create a tracking stock for Comdisco Ventures. The tracking stock must be approved by shareholders.

Investors have bid up the shares of several publicly traded venture capital companies this year, most notably CMGI Inc., which is up tenfold. Pasadena’s Idealab business incubator is considering an initial public offering of its venture capital arm.

Comdisco shares rose $4.50 to $40.50 on the NYSE, bringing their gain this year to 140%.