I'm trying to understand the implications of ML's
accumulation of shares and Creaf's possible buyback.
I've never done this sort of analysis before, so
please feel free to correct any obvious mistakes...
Creaf's Outstanding Float: 50.5 million shares (From Yahoo)
From the SC 13G/A filed 2/4:
Princeton Services, Inc. 7,533,721
Merrill Lynch Asset Management, L.P. 7,533,721
Merrill Lynch Technology Fund, Inc. 7,244,350
Which leaves 28,188,208 shares unaccounted for.
Thompsons gives this (outdated) Major Shareholders report:
Institutions
MERRILL LYNCH ASSET MGMT 8,157,450 09/30/97
SELIGMAN J W & COMPANY 4,765,800 09/30/97
FRIESS ASSOCIATES INC 3,000,000 09/30/97
NICHOLAS-APPLEGATE CAP. 2,358,027 09/30/97
STATE STREET RESR & MGMT 2,196,300 09/30/97
Funds
MERRILL L TECHNOLOGY 8,593,150 06/30/97
SELIGMAN COMMUN & INFO 3,800,000 09/30/97
BRANDYWINE FUND 1,952,600 09/30/97
FIDELITY SEL ELECTRONICS 1,632,200 08/31/97
STATE STREET CAPITAL FD 938,600 09/30/97
Not counting Merrill Lynch, that accounts for another
20,000,000 shares or so, leaving 8,000,000 for the
rest of us. If Creative spent $200 million at $20/share,
they could buy 10 million shares. That'll buy out half
the major shareholders, other than ML.
So we would end up with a float of 40.5 million shares.
PSI would own 18.6%
MLAM would own 18.6%
MLTF would own 17.9%
Other Major shareholders would own 24.9%
Minority shareholders would own 20%
PSI, MLAM, and MLTF are all Merrill Lynch, which would
now own 55.1% of the outstanding float.
Should we worry about this? They already own 44% of the
float without the buyback.
Doug. |
