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revlis

05/01/03 10:03 PM

#22311 RE: Learning2vest #22308

l2v,


I don't think your scenario is in the cards because why would management propose to grant 5 million additional options. Management would not do it. The 5 million additional options would not have any meaningful value as administered in the proxy statement. You would need a future exercised price set by the fair market value on the grant date. What would that be? Book value?


Jerry
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The Count

05/02/03 12:51 AM

#22335 RE: Learning2vest #22308

Learning2vest, Re: Interdigital going private

Interesting thought. Lack of liquidity of an investment decreases the price it can be sold for. You may want to hold for the dividends and trust that management unencumbered by SEC regulations and stockholder votes to be looking out for your best interests, but I don't see that as a value adding option for those poor meddling shareholders that remain.

If this IDCC's plan, using stock for compensation would definitely help them on the way - pay themselves in stock, conserving corporate cash and giving them more voting shares. Another reason not to vote yes.