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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: 1SFG who wrote (1280)	1/4/1999 1:13:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 41369

John, here's how the arithmetic stacks up. Before the deal closes AOL has approximately 518MM shares o/s. NSCP has approximately 104 MM shares o/s. After the deal closes there will be 564.8MM shares of AOL for the combined entity. I assumed that AOL does not currently own any NSCP. If they do, then those shares will be converted and retired to treasury. For example, if AOL currently owns 5MM shares of NSCP, those would be converted to 2.25MM shares of AOL and immediately retired to treasury, leaving 562.55MM shares of AOL o/s [564.8 - 2.25 = 562.55]. So the "problem" of new shares doesn't really exist. In a stock swap there is always an increase in the number of shares. In this case there will be an increase of around 46.8MM shares of AOL; assuming that there are sufficient shares authorized and unissued there is no problem. If there are insufficient authorized shares, AOL will ask its shareholders to increase the number of shares authorized. TTFN, CTC