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Well! Companies are finding a way to please some disgruntled employees.
They are using what is called "synthetic repricing". What actually
happens is that the company cancels the current stock options that were
issued at higher exercise price and guaranties to re issue the stock
options in 6 months at a lower price. This will impact all current
stock holders if this occurs. It is my understanding from the article
that I read, that if the companies stock were repriced before then that
it could be written off as an expense to the company. Both Ariba and I2
have done this already. It is my understanding that Inktomi, commerce
One and Vitria are considering doing the same. Some companies can
suffer dilution of up to 24%. What a better time then now to do all
these little shenanigans? Have a good evening. Ira.
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