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Technology Stocks : AMD:News, Press Releases and Information Only! -- Ignore unavailable to you. Want to Upgrade?

To: Paul Engel who wrote (5375)	3/31/1998 1:14:00 AM
From: greg nus	Respond to of 6843

Paul, AMD's reservation for AMD.B may not be for a Bond issue afterall. If todays analist talking heads are correct about a .25% stake in AMD up for sale. Lets make some assumptions. The 25% stake would be new issue. AMD can sell what it does not own. It does own many of the current shares outstanding. The AMD.B might be reserved for a new class of shares. I doubt they would be non voting. So the Class B shaes would have some sort of incentive that a private placement would demand, like a prefered rate of return, which would give the equity injector a leg up over present shareholders. This would still be highly dilutive to present share holders, who would have to agree or see the company run out of money. I still don't see the present share holders comming out on top without heavy dilution of 25%.