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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (78722)	3/28/2000 1:56:00 PM
From: IceShark	Respond to of 132070

Peddling convertible bonds "is like selling stock for higher than the market price," says Russell Grandinetti, Amazon's head of investor relations. Why did Amazon take the risk of borrowing? "Through debt issuance, we create value for our shareholders," Grandinetti argues, because it holds down the number of shares outstanding. Had the company floated $2.25 billion of stock rather than selling bonds, he estimates, the stock price would be about 15 percent lower. The favored sales pitch by the Street for junk companies .... and it works ... until the market falls. -g-