Subject: ALK
Dale,
Where did you come up with the figure of $132 million of debt being
converted? I estimate $78.591 million, based on the following
information from their latest 10-K. The dilution works out to
11.29% of the current number of outstanding shares. Of course,
that's still significant. Note that there is four times as much
dilution waiting out there, from the 6.5% debentures, maturing 2005.
Average number of shares outstanding 14,241
Assumed exercise of stock options 97
Assumed conversion of 6.5% debentures 6,151
Assumed conversion of 7.75% debentures 361
Assumed conversion of 6.875% debentures 1,608
Assumed conversion of 7.25% notes 0
Average shares as adjusted 22,458
1,608,000 shares x 48 7/8 = $78.591 million
Dilution: 1,608/14,241 = 11.29% |
