craven, after my last post I went to the L3 site and copied the following which in essence summarizes the SEC filings on the topic:
<< Board Approves Forced Conversion Plan
The PKS Board of Directors has approved in principle a
plan to force conversion of all 6,538,231 shares of Class R
stock outstanding. Due to certain provisions of the Class R
stock, conversion will not be forced prior to May 1998, and
the final decision to force conversion would be made by the
Level 3 Board of Directors at that time. The Level 3 Board
may choose not to force conversion if it were to decide that
conversion is not in the best interests of the stockholders of
Level 3. If, as currently anticipated, the Level 3 Board
determines to force conversion of the Class R stock on or
before June 30, 1998, certain adjustments will be made to
the cost sharing and risk allocation provisions of the
separation agreements between Level 3 and the
construction business.
If the Level 3 Board of Directors determines to force
conversion of the Class R stock, each share of Class R
stock will be convertible into $25 worth of Level 3 common
stock, based upon the average trading price of the Level 3
common stock on the Nasdaq National Market for the last
fifteen trading days of the month prior to the determination
by the Board of Directors to force conversion. For example,
if the average trading price of the Level 3 common stock
were $66 (the price of the last trade reported on the OTC
Bulletin Board on March 18), Level 3 would issue 2,476,603
shares upon conversion of the Class R stock. >>
According to this information the determination to force conversion will not even be made UNTIL May, 1998 and it will be made by the L3 board rather than the PKS board based on a determination of the best interests of the L3 shareholders. The conversion is on the basis of shares of L3 stock not a cash outlay and is based on the recent trading price.
The effect of the conversion will be dilutive to existing shareholders but not in a significant manner. There are 146 million shares outstanding according to one of the recent press releases. The last SEC filing listed 125 million shares outstanding. I am assuming that the difference is to account for shares sold to employees and may include some allocation for the pending Class R conversion rights.
I am assuming your histrionic little post is intended to have the effect of yelling "fire" in a theatre or something.
I hope you have a good explanation for that last post. If not, don't ever post here again. |
