SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Wind River going up, up, up!
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Allegoria who wrote (8738)10/29/2000 2:45:24 PM
From: Prognosticator  Read Replies (2) of 10309
 
These types of investments are occurring with increasingly frequency. What do you think $5B buys you? This is the business world...not a fairly tale. AT&T needs money to build out it's huge network. $5B to Mircosoft is not a killer sum of cash...it IS getting shares at a great price btw.

The warrant conversion price is $75/share. Excellent deal in May 1999, but given the closing price of T at $21 5/16 on Friday, I doubt they will exercise those warrants, so they just pissed away $5B. Meanwhile they're getting an effective interest rate of 1.25%. Pretty shrewd investment that, for AT&T at least. Just think, they could have picked up Wind for around 1/5 of that at the time. Thank goodness for the DOJ & anti-trust.

Microsoft will pay $5 billion for newly issued AT&T convertible trust preferred securities and warrants. The preferred securities, which will have a face value of $5 billion and be priced at $50 per security, will make a quarterly payment of 62.5 cents per security. The preferred securities, which will be convertible into 66.7 million shares of AT&T common stock at a price of $75 per share, will have a maturity of 30 years, and the conversion feature can be terminated, under certain conditions, after three years. The warrants will be exercisable in three years to purchase 40 million AT&T common shares at a price of $75 per share.

P.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News