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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: puborectalis who wrote (30738)	9/15/1999 1:27:00 AM
From: Sonki	Read Replies (1) \| Respond to of 41369

AOL SPLIT ? company is asking shareholders to approve the increase to six billion shares from 1.8 billion shares when they gather in nearby Chantilly, Va., for the annual stockholders' meeting on Oct. 28. AOL, which has had six stock splits since any one care to guess what this is all about? HERE IS THE REST OF THE STORY AOL seeks to increase authorized shares WASHINGTON, Sept 14 (Reuters) - America Online Inc. , the No. 1 Internet services provider, is looking to increase its authorized common shares for several possible uses, including stock splits, stock dividend payments and acquisitions. The Dulles, Va.-based company is asking shareholders to approve the increase to six billion shares from 1.8 billion shares when they gather in nearby Chantilly, Va., for the annual stockholders' meeting on Oct. 28. AOL, which has had six stock splits since Oct. 1994, has not currently decided to effect such a split, the company said in a preliminary proxy filed with the Securities and Exchange Commission. Its board considers a number of factors in deciding whether or not to enact a stock split, including "general market conditions." Getting stockholders to approve the 4.2 billion additional shares would give the company the "flexibility" to consider a combination of possible actions, including acquisitions or stock splits, that might require the need to issue more common shares, AOL said in the SEC filing. In addition, the increase could have an anti-takeover effect in that if the board wanted to issue more shares in the future, it could dilute the voting power of a party seeking control of AOL. The company currently has about 1.112 billion shares outstanding. AOL also disclosed in the proxy that Stephen Case, its chief executive officer and chairman, made more than $115 million by exercising 2.035 million options in the fiscal year ended June 30. Case, 41, was also granted options to buy 900,000 AOL shares at an exercise price of $22.50 per share on top of a fiscal year 1999 base salary of $575,000 and a $1 million bonus. AOL was down 9/16 to 89-11/16 in morning New York Stock Exchange activity. Those options Case was awarded in fiscal 1999 would have a potential realizable value of more than $11 million if AOL's stock price appreciated 5 percent through the 2008 expiration date. Their value would rise to more than $29 million if the stock rose 10 percent before they expired, the proxy said. Case also held more than $657 million worth of in-the-money exercisable options and $606 million in unexercisable ones as of June 30, the document said. Meanwhile, AOL President Robert Pittman made $591,667 in base salary and a $1 million bonus in fiscal 1999. He was granted options to buy 720,000 AOL shares with a strike price of $22.50 per share. Pittman also made more than $27 million by exercising options in fiscal 1999. ((Peter Ramjug, 202-898-8399)) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ..