Intel CEO Craig Barrett Files to Sell One-Third of His Holdings
Washington, Oct. 21 (Bloomberg) -- Intel Corp. Chief Executive Craig Barrett disclosed plans to sell one-third of his company stake, or 700,000 shares, as the world's largest computer chipmaker's shares recover from a slump earlier this month.
Three other company insiders also have filed with the U.S. Securities and Exchange Commission during the past week to sell a combined 110,000 shares in Intel, according to the Washington Service, which tracks insider buying and selling.
The proposed sales come as Intel shares are down about 10 percent from this year's high of 95 5/8, and are notable for Intel insiders, who until late last year usually sold stock when Intel shares reached all-time highs, said Paul Elliott, a research analyst with CDA Investnet, a Rockville, Maryland firm that tracks insider buying and selling.
This year, sales ''have come through on every rally, which to us is kind of a curious behavior. It shows a little bit of a lack of confidence that that rally is going to be sustained,'' Elliott said.
Barrett, who became CEO in May, has sold shares five other times over the past six years, according to Washington Service. After the proposed sale, he still would hold stock and options equivalent to 1.45 million shares.
Intel spokesman Chuck Mulloy said Barrett's planned sale represents options ''due to expire soon, within the next few months.'' Barrett's sale could garner about $59.2 million, based on yesterday's closing share price of 84 9/16. Intel shares rose 1 5/8 in recent trading to 86 3/16.
Competition
Santa Clara, California-based Intel on Monday bought Shiva Corp., a maker of networking products, as part of a strategy to move into computer networking for small companies and home offices, as its main chip business slows. Networking gear, such as network interface cards, are expected to be one of the fastest- growing parts of the networking market.
Still, amid competition with 3Com Corp., Intel last month cut prices in its computer-networking products for small businesses by as much as 49 percent. In the broader computer chip market, Intel faces competition from the likes of Advanced Micro Devices Inc., which is seeking to deliver chips with capabilities similar to Intel's at lower prices.
In addition, the company must contend with economic turmoil in the Asia Pacific region, where sales stagnated even as Intel reported record global sales for the third quarter.
More Insider Sales
Paul Otellini, executive vice president, plans to sell 64,696 shares, or 15 percent of his holdings, according to regulatory filings gathered by Washington Service. After the sale is completed, Otellini will hold 378,552 shares in the form of stock and options. That figure includes 32,000 options Otellini was awarded this year and an earlier sale of 62,000 shares.
Gerhard Parker, another executive vice president, plans to sell 40,000 shares, or 7 percent of his holdings. Parker will hold 530,182 shares in the form of stock and options after the sale. He's sold 150,000 shares so far this year, according to data compiled by Washington Service, and received options equal to 32,000 shares.
Otellini and Parker, like many high-tech executives who are compensated in stock options, have routinely sold company shares in past years. What's different is the timing of the sales, said CDA Investment's Elliott.
''We have noted a distinct shift in the insider profile at Intel Corp., as executives who held on to their shares when the stock climbed to all-time highs started selling shares at prices off the highs in the fall of '97,'' according to a report by CDA Investnet released in August 1998.
Charles Young, an Intel director and chancellor of the University of California at Los Angeles, disclosed plans to sell 5,000 shares. He now holds 30,900 shares, according to Intel's most recent proxy statement.
14:19:06 10/21/1998
Any redistribution of Bloomberg content, including by framing or similar means, is expressly prohibited without the prior written consent of Bloomberg L.P. Any reference to the material must be properly attributed to Bloomberg News.
The information herein was obtained from sources which Bloomberg L.P. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities.(C) Copyright 1998 Bloomberg L.P. BLOOMBERG, Bloomberg News, Bloomberg Financial Markets, Bloomberg Television, Bloomberg News Radio are trademarks, tradenames and service marks of Bloomberg L.P. |
