wsun
As part of the original deal with Intel, Intel received a warrant for 300,000 shares of RSYS, which it could exercise for up to $15 a share. In essence, Intel exercised the warrant to acquire 166,667 shares (presumably at the bargain price of $15 per share). It relinquished the remainder of the option (for 133,333 shares) back to Radisys for the exercise price. I don't recall the original agreement, but I think what "relinquished" means is that RSYS had the right to buy back any unexercised part of the warrant at the exercise price (again, presumably $15 per share). BTW, the warrant was not scheduled to expire until 4/98.
Thus, what appears to have happened is that Intel and Radisys agreed to get rid of the outstanding warrant, on the same day that Intel was no longer restrained from selling its RSYS stock, to clear all out all unfinished business from the original equipment deal. Intel exercised its right to acquire stock to the extent of 166,667 shares, and RSYS exercised its right to redeem the rest of the stock covered by the warrant to the extent of 133,333 shares.
Now, you guys who go to check out the SEC filing, don't get spooked by the fact that, in the document, Intel specifically notes that, from time to time, it will review the situation and MAY sell either all or part of its RSYS holding either publicly or privately. That's standard lingo informing the SEC that it is not holding the RSYS shares with an intent to acquire RSYS, but as an investment. It is NOT getting everybody ready for a DUMP! (Though, in the next few days, the "players" are going to try to make you believe otherwise.) And, it is hardly likely that Intel will sever its interest in RSYS while RSYS continues to be such a good customer (unless, and until, the possible profit on its sale of the stock is far greater than its profit from RSYS's business.)
Burt |
