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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: Big Bucks who wrote (5772)	4/24/2000 11:44:00 AM
From: DWB	Read Replies (1) \| Respond to of 15615

BB, Please take your medication. The increase in shares is necessary because they will be issuing NEW shares for the Global Center IPO, and most likely the Asian Crossing IPO. If you have 1 share of GBLX now, you may end up with 1 GBLX and .75 Global Center and 0.5 Asian Crossing shares (total guesses on my part). That's why they need the extra shares. Also, authorization of shares does not mean they are instantly dilutive. This is the same thing that companies do before the offer stock splits. 2 for the price of 1 does not dilute your holdings, since earnings are split by the same amount. The part that's dilutive is the portion of the IPO's that are currently owned by GBLX that they sell on the market. As JDN pointed out, that's property that you own now that they are going to sell to other people. What you get in the bargain is a more concrete acknowledgement by the financial community as to the worth of that portion of the business. It's GBLX's view that those efforts are being undervalued by Wall Street, and this will better promote their worth. By doing this, they hope to increase the value to you, by distributing the remaining portion to GBLX shareholders, and if you desire, selling them on the market. DWB Q2.5K/Y2K+5