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Gold/Mining/Energy : AIT Advanced Information Technologies Corp. -- Ignore unavailable to you. Want to Upgrade?

To: Serge Collins who wrote (72)	7/28/1998 11:15:00 PM
From: wayne cath	Respond to of 130

Dealing with option re-pricing can be a tough nut when you see your investment in decline. These situations are not the sleazy money grab many make them out to be.. Quality people come with a price tag. One way of keeping people of value is to supplement their meager (sometimes) wages with options. wayne

To: Serge Collins who wrote (72)	7/28/1998 11:36:00 PM
From: Lee Matheson	Read Replies (1) \| Respond to of 130

A shareholders' rights plan is supposed to protect the shareholders. If a company has more cash (and other assets), after all debits are paid off, than what the shareprice indicates, then the company is ripe for a take-over attempt, that may not drive up the share price (this lack of upward price movement would most likely be true during a market correction, or during a bear market). A company could be theoretically bought for a low price, and then have the component pieces sold at a much higher price. The existing shareholders may not see the benefit of the take-over, as they are "squeezed" out of holding their shares. I think a Shareholders rights plan is supposed to minimize the chance of things like this taking place. I agree it is easy to be concerned that management is just trying to protect their own positions (when a shareholders rights plan is announced), but I'm not certain that is the case here. In the cases I have seen where management is protecting their jobs, there usually is not a large shareholder (but rather a series of smaller shareholders). I think two members of the AIT Board of Directors still hold 25% of the company, and presumeably the Shareholders rights plan originates from them?