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Technology Stocks : Corning Incorporated (GLW)
GLW 88.32-8.0%Dec 12 9:30 AM EST
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To: t2 who wrote (970)10/18/2000 10:59:57 PM
From: t2  Read Replies (2) of 2260
 
The stock and debt offering is LESS than what was originally planned is how I see it.
The new offering is for 1.2 billion while the deal to buy Pirelli assets was for over 3.4 billion.
I guess this means LESS DILUTION to Corning's earnings.
THE LATE DAY AND AFTERHOURS TRADERS GOT IT WRONG, IMHO. I think dilution goes down from 5% to 1.5% approximately. This is actually great news from Corning, IMHO. That is why the stock recovered afterhours.

Here is the quote from today's release:
dailynews.yahoo.com

Corning said it will offer 30 million shares of newly-issued common stock, and will raise about $1.2 billion in gross proceeds

Here is the quote from the release when the Pirelli deal was announced back on Sept 27, 2000.
thestreet.com

Corning will make an initial payment of approximately $3.4 billion...
Corning, which will fund the transaction by issuing a combination of equity and convertible debt securities, said the deal will dilute its pro forma earnings in 2001 by less than 5%.

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There are other releases on Sept 27 that confirm that Corning was going to plan a 3 bilion debt and stock offering and not 1.2 billion as they announced today.
That is why the stock recovered late in the evening!
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