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Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: Curbstone who wrote (12557)	10/28/1998 1:14:00 AM
From: Fred Fahmy	Read Replies (3) \| Respond to of 13925

Mike, <Do you know whether or not it would be legal for Creative to offer to purchase Ng's shares privately rather than on the open market? > I'm not sure what restrictions apply here. I do know that, in general, this can be done. The company I work for did just that earlier this year. We had a stock repurchase plan in place and were buying shares from time to time on the open market. When the original investors decided to liquidate the last of their holdings, we bought their remaining shares at an agreed to price. This was a win-win situation. Both parties get a better average price then they would if they tried to buy or sell such a huge quantity on the open market. Here was the wording in our 10K (and similar wording was used in or press releases) when we announced the expansion of our buyback: In February 1998, the company's board of directors authorized the repurchase of up to an additional $200 million of its Class A common stock. This repurchase authority, like the prior authorizations, allows the company at management's discretion to selectively repurchase its stock from time to time in the open market or in privately negotiated transactions depending upon market price and other factors. But with the SES and CREAF I'm not sure if there is anything unique that would prevent them from doing something similar. I have been wondering this same question myself ever since it was announced that the SES was going to allow buybacks. Good luck to all, FF