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To: Charles R who wrote (21306)	12/1/2000 2:14:57 PM
From: Petz	Read Replies (1) \| Respond to of 275872

Buying back the convertible makes double sense re: <That's about right. I can understand if the management wants to have $1B cushion given the near-bakruptcy experience in the past but I see little point in not using the remaining money to do stock buybacks.> If they buy back the converts they are reducing diluted outstanding shares (thereby increasing the EPS) and simultaneously lowering future interest payments. For a given expenditure, say, $200M, they could either buy back 12.3 million shares or buy back $190M of debt which is convertible into 10.3 million shares. But in the latter case, they save $5.5M in interest every six months and eliminate $190M of debt. Petz