Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: qbull who wrote (6464)	6/11/2000 12:28:00 PM
From: Ellen	Read Replies (2) \| Respond to of 15615

globeandmail.ca CIBC poised for big gain Sold large stake in Global Crossing KAREN HOWLETT Financial Services Reporter Saturday, June 10, 2000 Canadian Imperial Bank of Commerce is poised to post another big gain from its merchant banking portfolio with the sale of $210-million (U.S.) worth of shares in Global Crossing Ltd. last month. CIBC Capital Partners, the bank's investment banking arm, said in a notice filed with the U.S. Securities and Exchange Commission that it intends to sell 10 million shares of Global Crossing, a Bermuda-based telecommunications company. The SEC released the notice Thursday evening. A CIBC spokeswoman confirmed yesterday that the sale took place around the end of May. Shares in Global Crossing, which is listed on the Nasdaq Stock Market, closed at $25.06 each on May 31. The latest transaction follows CIBC's sale of 6.8 million Global Crossing shares in the second quarter for an after-tax gain of $176-million (Canadian). This sale, in turn, accounted for nearly one-third of the bank's second-quarter profit of $643-million. The latest sale is expected to have a major impact on CIBC's results in the third quarter. Unlike the latest transaction, however, CIBC did not announce the sale that took place during the second quarter until it unveiled its financial results on June 1. CIBC spokeswoman Susan McDougall said the bank did not have to disclose the earlier transaction because CIBC sold the shares into a public offering done by Global Crossing rather than into the open market. But the bank has come under criticism from some industry observers for not disclosing the transaction at the time it occurred, because it had such a big impact on its financial results. "That's a significant asset that's being disposed of," said shareholder activist Robert Verdun. "The individual investor is not going to know [about it] unless CIBC discloses it." An industry observer who asked not to be named also said the bank should have disclosed the sale on the basis that information should be available to all investors at the same time. The initial sale of the Global Crossing shares was known to some players on Bay Street. But Ms. McDougall also said CIBC was under no obligation to announce the initial sale at the time it occurred because it was part of the bank's regular merchant banking operation. "It's not a material shift in business. It's not like we're entering a different business line." She also said it is widely known in the investment community that CIBC holds a large stake in Global Crossing and that has been "factored into our share price." Mr. Verdun said he cannot understand why CIBC wouldn't have trumpeted the fact that it made such a huge profit on the investment. "Investors have been waiting for the payoff."

To: qbull who wrote (6464)	6/11/2000 12:35:00 PM
From: Ellen	Respond to of 15615

insidertrader.com Institutional Holdings Summary For GLOBAL CROSSING LTD.: GBLX (Nasdaq) Latest Quarter -- Previous Quarter -- 2 Quarters Ago % Inst Owned: 33.6% -- 29.4% -- 26.9% Shrs Bought: 73,108,552 -- 63,432,761 -- 146,312,818 Shrs Sold: 39,752,830 -- 43,213,117 -- 5,599,394 Net Bought(Sold) 33,355,722 -- 20,219,644 -- 140,713,424 # Inst Owning: 434 -- 405 -- 265 # Buyers: 257 -- 291 -- 239 # Seller: 200 -- 99 -- 21 Net Buyers(Sellers): 57 -- 192 -- 218 The link also shows the top 10 institutional holdings.