Here's one...
CMGI to Split Shares, Less Than a Week After CEO Say No
Bloomberg News
March 17, 1999, 2:41 p.m. PT
CMGI to Split Shares, Less Than a Week After CEO Say No
Andover, Massachusetts, March 17 (Bloomberg) -- CMGI Inc.,
an Internet venture fund company, said that it will split its
shares 2-for-1, less than a week after Chief Executive David
Wetherell said the company didn't plan to do so soon.
CMGI will split its shares May 27 to shareholders of record
May 13, pending shareholder approval. It's the second split by
the company since December, which has seen its shares more than
triple in value since the start of the year.
Andover, Massachusetts-based CMGI slumped 10 percent on
Friday after Wetherell said that while the company hadn't ruled
out a split, it had no plans to do one soon. CMGI shares had
surged prior to that statement on speculation that it would split
the stock following this year's surge.
Investors have been snapping up shares of Internet companies
once splits are announced on the belief that they'll soar even
higher because of their more affordable prices and optimistic
growth prospects. Existing holders still own the same percentage
of the company's stock after the split.
CMGI, which is the largest shareholder of No. 3 Internet
search service Lycos Inc., drew a spotlight last month when
Wetherell said he wouldn't support Lycos' pending acquisition by
USA Networks Inc. CMGI has hired an investment banker to seek
alternatives and other bidders for Lycos.
Shares of CGMI fell 5 3/8 to 175 3/8. |
