Wendy McCaw may sell, according to 13-D filed Oct. 20.
Filing says she owns 14.1 MM shares, or 5.83%. This implies total shares of 240mm. (Actual fully diluted shares are 370mm.) 9.2mm owned outright by her and 4.9mm via options/warrants.
Filing notes, "primarily for investment... but anticipates making sales". Also apparantly she agrees to guarantee her prorata portion of debt, about 100mm, in Digital Radio, a McCaw controlled company that owns a major chunk of his NXTL holdings.
Looks to me like she will sell some opportunistically as price rises. As long as she holds more than 5% she has to report it. Don't know if she will be deemed an "insider" and have to report sales in advance on "transaction & intentions" report which would tell the market before she gets ready to sell. My guess is she will not be in a rush, but will be a seller. Given 2-3mm average daily volume the stock can take an orderly sale on her part, but I view this as slightly negative given an institutional concern of "an overhang". I think her hands will be regarding as "weak" and the cause of some nervousness in institutional community.
Further, my guess is she will hedge some meaningful part of her holdings via OTC options or other contracts. This could cause short interest to rise as the brokerage firm that takes the other side will hedge by selling short into market.
Bottom line, does not affect NXTL business, but I think will be viewed as a slight negative over the near to intermediate for the stock.
Rounded Up Bubba |
