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Technology Stocks : Broadband Wireless Access [WCII, NXLK, WCOM, satellite..]
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To: SteveG who wrote ()5/17/2000 9:18:00 PM
From: gruetz  Read Replies (1) of 1860
 
The CNCX acquisition will cost approx. 10 mln more NXLK shares at a NXLK price in the 60's or below than it would have at a price in the 90's or above. This potential incremental dilution could be exacerbating the decline of recent days. Any thoughts?

Grubman assumed there would be 210 mln fully diluted NXLK sh outstanding post the InterNext purchase from Eagle River, the Forstmann Little convertible preferred deal, and the CNCX acquisition assuming a .495 exchange ratio. However, with the NXLK price in the 60's or below, the exchange ratio is .650 (it would be .495 at a nxlk price of 90.91 or above, and between .495 and .65 within the collar of $69.23 and $90.91 to achieve a fixed price of $45 per CNCX share). This translates into an extra 10 mln shares yielding 220 mln f.d. sh outstanding rather than 210 mln.
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