Siebel shares dive on rumors
news.com.com
By Reuters
February 20, 2002, 5:15 PM PT
SAN FRANCISCO--Shares of Siebel Systems, the biggest provider of software to automate customer service, tumbled as much as 10 percent on Wednesday on speculation its chief financial officer may be leaving and that it might issue convertible bonds, a trader said.
Siebel stock fell $1.01, or 3.17 percent, to close at $30.89 on the Nasdaq. Earlier, the stock fell as low as $28.71. The stock has risen 9.5 percent so far this year.
Siebel ended last year with $1.66 billion in cash and short-term investments, adding $510 million in the fourth quarter alone, raising some questions as to why the company would need the additional money from the sale of a convertible bond.
"The stock sold off due to the following rumors: They may be issuing a convertible bond offering and the chief financial officer (may have) resigned. Another rumor was that the stock is down because there may be accounting issues similar to alleged accounting problems at Computer Associates," said Ali Saadat, options specialist with Letco on the Pacific Exchange.
Siebel spokeswoman Stacey Wueste said she had spoken with the company's chief financial officer, Kenneth Goldman, who told her that he had no plans to leave the San Mateo, Calif.-based company. She declined to comment on the rumors of the convertible bond sale. |
