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Technology Stocks : RTNa - Raytheon
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To: richard w allgaier who wrote (1)1/21/2000 5:27:00 PM
From: B.G. Galbraith   of 3
 
The a and b common stock designations resulted from the merger of Raytheon with Hughes Electronics. Apparently the only difference between the two classes of stock is that the "a" class retains most of the voting privileges related only to the removal or appointment of board members. The following excerpt from a Raytheon S-4 filing seems to summarize it.

Copied from S-4 filing by Raytheon in conjunction with the Hughes merger.
Dated 11/10/97

"Q. WHAT IS THE DIFFERENCE BETWEEN THE CLASS B COMMON STOCK THAT I WILL RECEIVE
AND THE CLASS A COMMON STOCK?

A. The Class B common stock represents 70% of the outstanding equity value of New Raytheon. The Class A common stock represents the remaining 30%. With respect to all actions other than the election or removal of directors, the Class A and Class B stockholders have equal voting rights. With respect to the election or removal of directors only, the Class B stockholders have 19.9% of the voting power. The Class A stockholders have the remaining 80.1% of the voting power. The dual-class voting structure will not have any immediate effect on the membership of the New Raytheon Board."

Based on this, it appears that both classes of stock retain proportionate equity in all the assets of the combined organization.
BG
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