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To: Mama Bear who wrote (24722)	10/5/2000 1:00:58 AM
From: LLCF	Respond to of 436258

Ho ho ho... that's the way they are interpreting it! It's outrageous!!! Check this out from the company I assume: "To enhance its stock repurchase program, Microsoft sold put warrants to independent third parties" So you've got a stock buy back that would turn into a "reverse stock buy back"... ie. shares out would INCREASE in a big way. HO HO HO............. can you belive this.... I think you're right! Look at the scenario if the stock opened at $5.... : Assume MSFT trades at $5, then the $70 net settlement value demands the delivery of about 14 times the stocks puttable... that translates into 2382MM (newly issued) shares... AND the part that is REALLY scary, is whoever owns the puts would now own that stock unhedged... I'm dying to read the pertinent legal portions of the contract to see exactly how that ratio is determined.... ie. settlement price of stock on settlement date... a series of dates... etc. What a scandal is the stock ever collapsed. dAK