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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: Sowbug who wrote (6212)	12/5/1997 1:15:00 PM
From: Brent D. Beal	Respond to of 13594

Wouldn't it be to AOL's advantage if the bondholders converted before the price tanked?--if the stock were to go to $110 or so, wouldn't most of the $350 million wind up in stock and then after AOL becomes fairly priced by the market, AOL would never have to repay the money? Of course it would result in some dilution and the bondholders would be left holding stock worth about $20 a share, but wouldn't the end result be that AOL walks away with more money than they're likely to make honestly in 10 years of operation--assuming they ever become profitable?