CS Letter (10/6/00)
Good morning,
Letter to Shareholders
FRIDAY, OCTOBER 6, 2000 8:18:00 PM EST
ROCHESTER, N.H., Oct 6, 2000 (BUSINESS WIRE) -- The following open letter to shareholders was released today by Piyush Patel, president and CEO of Cabletron System, Inc. (NYSE: CS):
Cabletron has decided to begin an irrevocable program for executives to diversify their portfolio by selling up to 9% of their Cabletron stock holdings on an annual basis. It is anticipated that annual activity under the program will involve less than 0.15% of the Cabletron shares outstanding.
To facilitate the program, a third party has been given irrevocable instructions to sell a fixed number of shares monthly, and will have no authority to expand, limit, or suspend these sales, which will be completed regardless of the stock price. The executives participating in the program will retain no right to alter those instructions. Additionally, the date of the sales within the month will be independently determined by the third party, which will not have access to any inside information or direction from the Cabletron executives.
In August the Securities and Exchange Commission adopted Rule 10b5-1. It recognizes the creation of formal programs under which executives may sell the securities of publicly traded companies on a regular basis in a manner that insulates those transactions from the ability to benefit from inside information. This rule is attended to assure that trading will not be done on the basis of material non-public information and allows executives to diversify their holdings without flexibility or control over the timing or price of specific transactions.
I expect that the value of the retained Cabletron shares will continue to represent most of my personal holdings as well as the holdings of the other participants, which reflects our continued confidence in the success and prospects of our company.
Kind Regards,
Piyush Patel |
