RCN WANTS TO DOUBLE AUTHORIZED SHARES, PROXY FILING SAYS
By Brian Steinberg, Dow Jones Staff Reporter
NEW YORK -(Dow Jones)- RCN Corp., a telecommunications company with a nontraditional approach to business, wishes to double the number of its authorized shares, according to a proxy statement filed with the Securities and Exchange Commission.
Princeton, N.J.-based RCN (RCNC) said in the filing that it will ask shareholders to approve a motion essentially doubling the number of authorized shares of common stock to 200 million from 100 million. In the vote, set for May 19, the company will also ask shareholders to approve an increase in the number of authorized shares of Class B nonvoting stock to 400 million from 200 million.
A letter from RCN Chairman and Chief Executive David C. McCourt contained in the proxy tells investors the share increase could be used for possible public and private share offerings, acquisitions of other companies or properties or employee incentive plans.
McCourt's letter adds that the number of authorized shares was "significantly reduced" by an April two-for-one stock split effected as a 100% dividend.
RCN has gained prominence in recent months for its acquisition of Erol's Internet, a northeastern Internet provider. It also announced a novel alliance with Potomac Electric Power Corp. (POM) of Washington, D.C, that will allow it to compete with that area's telecommunications providers.
In other news, the proxy revealed that McCourt received $1.9 million in salary and bonuses in 1997. The executive was also given a restricted stock award worth $380,000 on the date it was granted, and 1 million options with an exercise price of $15.31 and an expiration date of Oct. 30, 2007. In addition, McCourt received $2,703 in 1997 for company-paid life insurance and a company-matched donation to his 401K, the document indicates. In 1996, McCourt received nearly $1.2 million in salary and bonuses, according to the proxy.
The statement revealed that McCourt's compensation includes money for his service as Chief Executive of C-TEC, RCN's former parent company.
RCN, which was spun off in the fall of 1997, offers cable, data and phone service, competing with more established players in large metropolitan areas. It is also a reseller of Bell Atlantic phone lines. The company's markets include New York, Washington, D.C., and Boston. |
