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Biotech / Medical : ARIAD Pharmaceuticals -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (640)	8/9/1999 10:57:00 PM
From: Biomaven	Read Replies (1) \| Respond to of 4474

David, I never said that they would exercise immediately - of course they would wait the 22 days to see if they get a better conversion price. My point is that if they have waited those days and the price has not declined further, they would then be at risk if they did not then convert. I'm not trying to defend the floorless of course - in fact if you go back in the thread you will see that I was the person who first screamed loudly when they announced it. (I also disclosed then that I had immediately sold all all my shares.) This floorless is actually the most complex I have ever seen - I'm still not sure if people ever figured out whether the potentially lower conversion price ever kicked in or not. It also has this strange follow-on provision where the Preferred holders basically get a call allowing them to double their investment under certain conditions and the company gets a put as well. That said, if the stock weakens at all from here, given the present munch environment I might buy some back as a short-term trade. Peter