A shelf registration will permit the Foundation to sell its Cobalt shares from time to time through underwritten offerings
, negotiated block transactions or other means.
The restricted shares are those owned by shareholders of the company who acquired such securities principally in connection with the 1986 formation of, or purchase of insurance from, the company and who elected not to sell their shares in the underwritten offerings
made available to them by EXEL in 1991 and 1992.
and Montgomery Securities will act as co-managers of the underwritten offerings.
Copies of the registration statement relating to the underwritten offerings may be obtained from Merrill Lynch & Co.
The proposed underwritten offering represents 5,100,000 shares, or approximately 16 percent of the 30,946,081 common shares of First USA Paymentech to be outstanding after the offering, (or approximately 18 percent, if the underwriters' over-allotment options are exercised in full).
Pursuant to the registration statement, sales of Common Stock may be made from time to time in market transactions or in privately negotiated transactions, including underwritten offerings
The company also granted the United States and international underwriters of the underwritten offering
30-day options to purchase 612,000 shares and 153,000 shares, respectively, at $21 per share to cover over-allotments.