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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: KevinMark who wrote (25415)	11/10/1999 12:36:00 AM
From: rdmsqito	Respond to of 108040

There was some chatter around here earlier today on CHTR regarding mcap and comparisons. I was a little surprised to see ipo express showing 170mil shares offered and 170.1mil outstanding so I pulled this from the prospectus- After the offering and excluding 52,246,534 membership units to be issued in connection with the Falcon and Bresnan acquisitions, there will be 322,620,695 outstanding Charter Communications Holding Company common membership units owned by persons or entities other than Charter Communications, Inc. Membership units are exchangeable for shares of Class A common stock on a one-for-one basis, except that Mr. Allen and his affiliates may exchange membership units for shares of Class B common stock on a one-for-one basis. Class B common stock is convertible into shares of Class A common stock at any time on a one-for-one basis. If Mr. Allen and his affiliates converted and exchanged all Class B common stock and membership units held by them for Class A common stock, they together would own approximately 65.5% of our Class A common stock or 62.3% if the underwriters exercise their over-allotment option in full. So therefore, wouldn't it be more appropriate to consider about 500mil outstanding making this a $10bil company @ $20? And don't forget the 25mil+ over-allotment which would add an extra $1/2bil all by itself if exercised, which you would figure it would be considering the interest. Someone please correct me if my reasoning is wrong, I have little interest in CHTR itself but am interested in learning from such a large offering. I will be keeping a close eye on UPS from the sidelines tomorrow as well. Also- Kevin, I think you picked a great place for the alternate board, looks real good. Thanks as well to the person who rec'd it(sorry, can't remember who it was).