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Article: Allentown, Pa.-based chipmaker to seek reverse split to boost stock.
- Article from:
- The Morning Call (Allentown, PA)
- Article date:
- December 14, 2004
CopyrightCOPYRIGHT 2004 The Morning Call. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Jeanne Bonner
Dec. 14--Agere Systems will ask shareholders to approve a reverse stock split that could boost the company's share price up to 40 times.
A reverse split increases a company's share price by reducing the number of outstanding shares. The Hanover Township, Lehigh County, chipmaker is seeking approval for such a move because its stock has fallen more than 50 percent since January and has been trading under $2 since July.
The reverse split could make the company's shares more attractive to institutional investors but some analysts see it as an artificial way to boost the share price.
Agere filed a preliminary proxy ...