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To: 10K a day who wrote (146495)8/30/2002 10:20:58 AM
From: H James Morris  Respond to of 164684
 
Bank of America Montgomery
Siebel filed an 8-K detailing a novel exchange offer to employees with incentive options. Options with strike prices over $40/sh may be exchanged for cash and stock that "vests" over 2-4 years. A $67mm charge ($27mm cash) and common stock issuance of 3.6mm shares will likely occur in 3Q02 in exchange for the cancellation of options covering 32mm shares. Novel tactic may pressure shares. Reiterate Buy.