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Technology Stocks : CheckFree (CKFR)

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To: Brooks Jackson who wrote (702)10/29/1997 8:35:00 AM
From: Charlie Smith  Read Replies (2) of 8545
 
Brooks:

Your question on dilution is the right one. As for "giving away too much" I'll know more after the conference call.

The warrants which vest in 60 days have a current value of $15 million, so this is the immediate cost to CKFR of doing this deal. Obviously Kite sees the market opportunity as worth far more than that. I hope the performance targets linked to vesting of the other 7 million shares are very aggressive. You can be sure I'll ask about them.

Regards
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