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Technology Stocks : Jabil Circuit (JBL) -- Ignore unavailable to you. Want to Upgrade?

To: debra vogt who wrote (5583)	6/6/2000 5:25:00 PM
From: OldAIMGuy	Respond to of 6317

Thanks DV, 13MM shares at $41-3/4. Well, THAT stirred the pot a bit!! Best regards, Tom

To: debra vogt who wrote (5583)	6/7/2000 9:17:00 AM
From: Sam	Read Replies (2) \| Respond to of 6317

Interesting article. My bolding. U.S. Broker Sees More 'Overnight' Stock Offers By Dick Satran SAN FRANCISCO (Reuters) - A $542 million ``overnight'' stock offer by electronics manufacturer Jabil Circuit Inc. (NYSE:JBL - news) could create a blueprint for future share deals in this volatile market environment, the broker who handled the deal said on Tuesday. One of the largest such transactions of recent years, the transaction took place despite the market's recent volatility and the withdrawal of a number of secondary stock offers planned by various companies over the past month. ``A ton have been canceled and pulled recently, and that's exactly why we didn't want to take a chance on a normal road show transaction,'' said Thomas Weisel, chairman of Thomas Weisel Partners, the San Francisco investment bank that handled the deal, in an interview. A typical secondary offering ``road show,'' in which companies go on the road and make presentations to investors, can take several weeks, and, in the current trading environment, ``companies risk seeing their stock drop 10, 20 or 30 percent while they wait to get to market,'' Weisel said. Jabil, a fast-growing St. Petersburg, Fla.-based maker of electronics components, had planned a deal for some time but saw its stock drop sharply when Nasdaq fell in the April-May tumble. From this year's high of $45 in March, it started falling in April and hit a low of $34 in late May. But it snapped back to near the year's high during the market's recovery of late May and early June, helped, in part, because a company with a similar business strategy, Flextronics International Ltd. (NasdaqNM:FLEX - news) lined up a $30 billion deal to supply electronics components to Motorola Inc. (NYSE:MOT - news). When Jabil's stock started to recover, Weisel set up the deal so that they could ``pull the trigger at anytime.'' Weisel's sales force managed to line up institutional buyers to sell the shares on short notice, selling 13 million shares overnight on Monday in a deal underwritten by Weisel. Its offer was priced at $41.75, and the huge stock sale did little to depress the shares in the market. It closed at $41.75, down 25 cents. Weisel said 88 different investors participated, with about 15 percent of them from abroad. The company said its fee was 2.99 percent of the sale, about normal for secondary offerings, garnering an estimated $16 million for the investment bank. ``Companies need to get in and out of these markets quickly,'' said Weisel, ``We expect to see, and do, more deals like this.'' But despite the success of the Jabil deal, Weisel offered little hope that any ``dot-coms'' or other struggling e-commerce players would be able to use this quick-hit financing technique. ``It's got to be high-quality companies, in some of the favored sectors that institutional investors are interested in,'' said Weisel. Optical networking concerns, chip companies and telecommunications services companies are among the areas where additional deals could be done, he said. Those companies involved in building the Internet and data networks have ''enormous capital needs that could take advantage of this strategy,'' Weisel said. For Jabil, the proceeds of the offering will be used to repay debt, fund capital expenditures and general corporate purposes, including working capital and possible acquisitions.