Dr. Smith owns 435,880 shares per the proxy statement. In addition, as of the end of 1997 he held options on stock as follows: 25,000 that are exercisable and 248,750 that are not exercisable.
The zero-cost collar expires on Oct. 30, 2000. Thus, almost 1/4 of his shares are tied-up in this arrangement. Maybe it doesn't necessarily indicate that he believes the price will drop, but alternatively, it says to me he is not looking for the stock to blast-off anytime soon. If I was in his shoes and thought a deal was in the making that would give a lift to the stock, I wouldn't tie-up 1/4 of my holdings.
It is also interesting to note that Dr. Snyder also did a zero-cost collar on 93,478 shares. He owns 635,217 shares.
The proxy statement shows Amgen with beneficial ownership of 1,340,095 shares, 700,000 of which are for currently exercisable warrants. If I recall correctly the exercise price is $35. Why include warrants that are so far out of the money in the ownership of shares disclosed in the proxy statement? I must admit, it looks pretty impressive to see Amgen with the million plus shares of beneficial ownership in Glfd even though I think it distorts the picture a little.
When is a big pharmaceutical going to use its paper money to acquire a
under-valued biotech? I think that would help ignite this sector. |
