M-Systems Investigates Stock Practices, Postpones Offering
Staff Reporter -- EDN, June 1, 2006
M-Systems today said that it cannot proceed at this time with a previously announced stock offering.
The company is postponing the move because, like several other companies in the semiconductor industry, the flash player has launched an internal probe into its prior stock option granting practices.
On May 25, the Israel-based company announced plans to offer 8.7 million of its ordinary shares in a public offering. M-Systems had also planned to grant the underwriters of the offering a 30-day option to purchase up to an additional 1.3 million ordinary shares.
After today's statement, the company experienced a share price plunge of 10.5 percent to $30 in pre-market trading on INET.
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