Former junk bond king Michael Milken has sold about one-third of his holding in troubled computer games company 7th Level, Variety magazine reported.
Milken took advantage of a jump in 7th Level's stock price last week to sell 500,000 shares for about $1.7 million, according to a Securities and Exchange Commission filing made late Friday, according to Variety's latest issue.
For the Record
Los Angeles Times Friday September 5, 1997 Home Edition Business Part D Page 3 Financial Desk 2 inches; 44 words Type of Material: Correction
Milken divestment--A Reuters news service report, based on a Variety magazine article and published in The Times on Tuesday, stated that Michael Milken sold about one-third of his stake in computer-game company 7th Level. 7th Level said this week that the stock divestments were charitable donations, not sales.
The Dallas-based company's chief financial officer, David Craig, declined to comment, and Milken could not be reached, Variety said.
7th Level, which makes computer games based on entertainment entities, including Monty Python, has seen its stock fall from a high of $20 in October 1995 to last Tuesday's closing price of $1.75. The plunge reflected heavy losses that had led to a financial and management overhaul, Variety said.
On Wednesday, 7th Level announced a deal involving Microsoft Corp., prompting a rally in the stock. It closed at $3.06 on Friday.
Milken sold 150,000 shares on Wednesday and 350,000 on Thursday, leaving him with 1.3 million, or about 9.5% of the stock, Variety reported. The filing did not specify the price he received.
Milken was one of 7th Level's first investors, putting in $1 million in 1993 a few months after serving a two-year prison term for securities fraud. The investment translated to a 19.2% stake of the outstanding stock when the company went public in late 1994, Variety reported.