JDS Uniphase Seeks To Double Authorized Shares To 6 Bln (JDSU)
(NewsTraders.com) -- Already commanding a substantial equity float of nearly 958 million shares outstanding, optical networking highflier JDS Uniphase (JDSU) opened the way today to raise its capitalization further through a measure that would increase to 6 billion from 3 billion the number of common shares the firm is authorized to issue.
JDS Uniphase said it may use a portion of the additional shares in its pending acquisition of SDL Inc. (SDLI), which is expected to close in the fourth quarter, according to a preliminary proxy filing.
The additional stock could also be used for a number of other purposes, including follow-on offerings, further acquisitions, equity compensation for employees, or declarations of stock splits or distributions, though other than for the SDL purchase, JDS Uniphase noted that it has no specific plans for the shares.
Besides giving rise to talk of stock-based acquisitions, an increase in authorized shares frequently sparks speculation of a stock split; JDS Uniphase last executed a split through a two-for-one division on March 10.
Shareholders of record as of Oct. 23 will have an opportunity to vote on the increase at the company's upcoming annual meeting, scheduled for Dec. 13 in San Jose, Calif.
Shares of JDS Uniphase were recently lower by $2.81 at $92.25. |
