Dave, took me awhile to navigate around the Sedar site and read the small print. Correct me if I err in discussing the situation:
8/26/98 Material Change Report [and for all of those who want to read it yourself, it's listed as 9/4/98 on Sedar] states:
"If Messrs. Elwood, Ferreira and Teodorovici exercise options and warrants which they will acquire pursuant to [Red Engine amalgamation] arrangement, they will in aggregate control 11,015,786 shares." For those of you who want to read the article, but not spend hours finding this line it is on page 5, paragraph 1, last sentence.
Then if you go to the 8/24/99 Annual Information Form filing, bottom of section 7 [directors] (just above text for section 8) it says:
Director and executive officers owned as of 8/16/99 10,259,884 shares, representing 21.07%.
Note that this is SHARES owned, and does not include options and warrants.
COMMENT: so if Ted, Paul and Bill exercised all of their options and warrants (and this a big if, as many of the options and warrants, I think were priced above current market values) they would have owned 11,015,786 shares. If you buy the presumption [which I don't] that all options and warrants were exercised, the fact that they now own 10,259,884 shares would mean that they had sold 750k shares.
Let's see, the principals own 21% of the corporation. What percent of INCO does the management own. Or another way of phrasing it:
When Ted bought Cobatec, he is, in essence spending his money, and that of his close associates, e.g. they own 21% of the company.
When INCO paid 4.3 bil for VB, was the chairman spending his own money. Was his management group owners of 21% of the corporation.
Full disclosure, indeed. |
