FORE
Remember them? Check this out! Freaking $$ printing press.
Friday May 14, 8:13 am Eastern Time
FORE Systems directors grant options-WSJ
NEW YORK, May 14 (Reuters) - Directors of Fore Systems Inc. granted hundreds of thousands of stock options to executives when the company was in private talks to be acquired by Britain's General Electric Co Plc (quote from Yahoo! UK & Ireland: GEC.L), the Wall Street Journal reported Friday.
As a result, executives of the Warrendale, Pa. maker of Internet-switching equipment stand to reap millions of dollars next month when the actual $4.5 billion acquisition is expected to be completed, the newspaper said. The stock options, at prices ranging from $13.44 to $20.56 a share, are well below GEC's $35-a-share cash offer, acccording to the newspaper.
Agreements signed between GEC and the seven Fore Systems executives on April 26, the date the acquisition was announced, permit them to get a cash award representing the difference in price between their stock options and the $35-a-share offer price.
Fore Systems President and Chief Executive Thomas Gill qualifies for a $15.4-million cash award, including $2.8 million gained from his 150,000-share award approved by the board's compensation committee on April 7, the newspaper said. That was more than a month after the initial overture by GEC to Fore Systems and Mr. Gill, according to the Journal.
Christopher Gebhardt, Fore Systems' vice president and corporate counsel, said the company ''doesn't believe it violated any laws'' with the option grants. He added: ''I'm not going to make any further comment.''
In London, GEC chief media spokesman Martin Sixsmith said the giant British technology concern ''knew about'' the issue and was unconcerned about it, he said. Sixsmith said it was GEC's understanding that the option grants reflected the executives' promotions or anniversary dates with Fore Systems when options often are granted.
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