America On-Line: will it survive ...? Message Board

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Technology Stocks : America On-Line: will it survive ...?

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To: Keith A Walker who wrote (10492)	6/30/1998 12:53:00 AM
From: jack rand	Read Replies (2) of 13594

Especially given that it was via block trade, a possibility is that it's related to AOL's 11/97 $350 million convertible 4% note offering to institutional investors. If so, some smart money is bailing from what amounted to a nifty option on AOL stock -- Loan at 4% convertible to AOL at $52/share. The notes are convertible into a total of 6.7 million shares. On 6/11 an S-3/A was filed; and 06/24 and 424B listing selling security holders. The notes were originally sold by Goldman, BT/AxB, Lehman, and Cowen. Among the listed selling holders are BA/RS, Merrill and Smith Barney in addition to GS,BT/AxB. In addition on 6/18 AOL filed S-8 registering 6 million shares for employee options, of which 2.7 million have been granted. Anyway, the timing of the sale two weeks and 20+ points after the rumors of AT&T buyout etc. is interesting.

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