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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: d[-_-]b who wrote (36179)	8/18/1998 10:08:00 AM
From: Bill Jackson	Read Replies (2) \| Respond to of 1570499

Eric, What happens when they buy up all the shares? No shareeholders, just officers etc. Interesting end point as they would in theory become very valuable, like Hathaway. I feel it serves the management better than the shareholders as a weakness in the stock can be covered by buying up shares. The other effect I note is Intel buys them at market and the the employee options go out at a huge discount and the employee takes that profit. If the buying and option issuance are kept the same then there is no dilution and only a dissipation of an asset for intel? Some have made this same point, why do it?, why not invest the money elsewhere. I have always felt it to be a retrograde step, and I continue to feel that way. If Intel bought and issued shares as they liked whenever they wanted to in whatever numbers it would approach market neutrality. But the SEC has rules and about issuance of new shares, why not rules on the destruction of old shares? Or can intel buy 10 million shares today and sell 10 million tomorrow and report only the net? Or is the sale a prospectus generating event? Bill