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Technology Stocks : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: digger who wrote (8886)	5/29/1999 3:23:00 PM
From: killybegs	Read Replies (2) \| Respond to of 17679

That's what the directed subscription program is about. My guess is that it will work something like this... 1. Assume 50 million shares outstanding for parent. 2. Assume a 5 million share IPO offering for NEWCO. 3. Parent mgmt allocates 3.5 million shares to institutional investors and .5 million to retail non shareholders and 1 million to Parent individual shareholders as of a certain record date. 4. Assume 40 million shares are held by management and individual share holders. So 1 million allocated over 40 million would yield you the right to subscribe to IPO shares at the ratio of 1 NEWCO share for each 40 Parent you hold. Example..you hold 2000 shares of Parent, you will have an opportunity within a fixed window of time to subscribe to 50 shares.