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

To: Glenn D. Rudolph who wrote (10021)	5/14/1998 11:46:00 AM
From: H James Morris	Read Replies (1) \| Respond to of 13594

Why would Case/Pitman be worried about a takeover attempt??. Even Bill Gates or Michael Dell couldn't afford it!! Could they?? DULLES, Va., May 14 (Reuters) - America Online Inc. said on Thursday its Board of Directors replaced its five-year-old shareholder rights plan, to reflect the increase in the company's stock over the past five years. In April 1993, AOL adopted the original rights plan, which is intended to protect shareholder interests in the event of a a takeover attempt. AOL has ordered the redemption of all rights granted under the original plan. In adopting the new plan, which would be triggered if a person or group acquired 15 percent of AOL's common stock, the company said it was not doing so in response to any known effort to acquire the company. In addition to certain other modifications, the new plan increases the exercise price of the rights to $900, in order to reflect the significant increase in the company's stock price since the former rights plan was adopted in 1993. Shares of AOL traded on Thursday morning at 89-1/8, off 13/16. Five years ago the company's stock traded at an adjusted price of about $2 per share. The new plan was implemented by declaring a dividend distribution of one preferred share purchase right for each outstanding share of America Online's common stock. The dividend will be distributed on June 1, 1998. The new rights will expire on May 12, 2008 unless redeemed prior to that date, AOL said. 10:14 05-14-98