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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Mick Mørmøny who wrote (67889)	5/17/2005 1:12:16 PM
From: Stock Farmer	Read Replies (2) \| Respond to of 77400

Interesting proposal by Cisco. Obviously, the purchasing financial institutions will be motivated to pay the lowest possible price for these options. So the "fairness" of any valuation model depends on the objectivity of the parties standing in on the other side of the trade. That is, the party selling the option. If this party is Cisco, they (executive, directors and any others who are compensated by options) will need to prove beyond a shadow of a doubt that their objectivity in establishing the sale price is not impaired by the obvious benefits of under-pricing these options. Tremendous opportunity here for class action litigation if this thing isn't constructed perfectly. John