Lucent Technologies (LU) Message Board

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Technology Stocks : Lucent Technologies (LU)

LU 2.620

+2.7%

1:04 PM EST

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To: bofp who wrote (21050)	10/25/2002 8:21:53 AM
From: GVTucker	of 21876

As far as the dilution already happening - au contraire. The degree of dilution will depend entirely on the price of a LU share at the time of the August 04 Put. If the price is still less than $1, the dilution is 4 times what it would be at a $4 conversion. This is why LU is buying in the convertable NOW. Just about 100% of the covertible issue was hedged by short sales. That is why I said that the dilution already happened. And when LU buys back the covertible, it is essentially the same thing as a share buyback. LU buys the covertible, and the fund covers the short sale. There was also a hedgefund going extremely LONG LU for most of the day. Were they going extremely long or were they buying to cover?

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