From AAPL's 10-Q.
NOTE 6--SHAREHOLDERS' EQUITY - PREFERRED STOCK
>In August 1997, the Company and Microsoft Corporation (Microsoft)
entered into patent cross licensing and technology agreements. In
addition, Microsoft purchased 150,000 shares of Apple Series "A'
non-voting convertible preferred stock ("preferred stock") for $150
million. Except under limited circumstances, the shares of preferred
stock may not be sold by Microsoft prior to August 5, 2000. Upon any
sale of the preferred stock by Microsoft, the shares will automatically
be converted into shares of Apple common stock at a conversion price
of $16.50 per share and the shares can be converted at Microsoft's
option at such price after August 5, 2000. *Each share of preferred
stock is entitled to receive, if and when declared by the Company's
Board of Directors, a dividend of $30.00 per share per annum, payable
in preference to any dividend on the Company's common stock, plus, if
the dividends per share paid on the common stock are greater than
the dividends per share paid on the preferred stock on an "as if
converted" basis, then the Board of Directors shall declare an
additional dividend such that the dividends per share paid on the
preferred stock on an "as if converted" basis, shall equal the dividends
per share paid on the common stock.* <
sec.yahoo.com
Would someone please translate the above *section* into English?
I think it means that AAPL could buy out MSFT's shares for $4.5 million
special "dividend" at its discretion. Yes? |
