I think this stock price will remain under pressure and stay less than $62.438 until the physical stockholder's vote on December 6, 2000. I expect, at least, the stock to trade in the mid $50s to $62.438. If you read this, you will know why this is my opinion. After that day, the stock may resume its upward trend.
biz.yahoo.com
Friday November 3, 10:44 pm Eastern Time
Avocent sets Dec 6 to vote on stock, option plans
HUNTSVILLE, Ala., Nov 3 (Reuters) - Avocent Corp (NasdaqNM:AVCT - news), which makes switching systems that control personal computers and servers from one location, filed paperwork with U.S. regulators on Friday for a special December 6 meeting of stockholders to decide on stock option and employee stock purchase plans.
The company said stockholders would vote on a 2000 stock option plan and the reservation of 6 million common shares of common stock to be issued under the plan.
They would also decide on the adoption of the company's 2000 employee stock purchase plan and the reservation of 1.5 million shares for issuance under the programme.
The company's board has approved the grant of 1.78 million options under the 2000 plan to the company's executives and directors, with an exercise price equal to either $52.438 per share or $10 less than the closing sales price of the company's common stock on the day on which the stockholders approve the plan, whichever is greater, the company said
If the closing price of the common stock on the day of adoption is greater than $52.438, the company will be required to recognize a pre-tax non-cash charge as compensation expense of up to $17 million. The company will amortize any non-cash expense as part of its intangible asset amortization at a rate estimated not to exceed 2 cents per quarter over a four-year period. |
